TECHNICAL ANALYSIS: AngloGold shares show upturn potential as gold shares still in focus | Fin24
 
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TECHNICAL ANALYSIS: AngloGold shares show upturn potential as gold shares still in focus

Jul 12 2019 12:48
Colin Abrams

Leading gold producer Anglogold is pausing in the short-term before potentially renewing its uptrend. Its share price still has large upside potential, and gold shares are very much still an area to focus on.

ANGGOLD (ANG) – Upside breakout imminent?

Recommendation: BUY (OR ADD TO) ON A BREAKOUT

Current Trend: Up on all main timeframes.

Strategy: It remains a medium-term hold; buy/add to on a close above line 2.

Chart Setup: Anggold is consolidating in a rising wedge/triangle (lines 1 and 2). It can break out in either direction. But the emphasis should be on the buy side.

  • Its Stochastic is giving a series of negative divergences, which is normally a bearish sign; but so far the price is ignoring it, which shows underlying demand for the stock.

(Daily chart)

chart 1107

Strategy Details: Either way, it remains a core med-term hold. If it closes above line 2 (R260.75) then add to holdings. If not in, buy then. I would not short a breakdown of line 1 (R248 level) if that happens. 

Target: Minimum target for an upside breakout will be R285 based on the wedge (where traders can take some profits). And for a breakdown, it’s to R230 (where one should look to buy/add to).

  • Main target (med-term+) is R317.75, based on a large rounding bottom pattern. 

Stop-loss: Medium-term stop a close below R210. (In the immediate short-term, use a close below R243).

  • Colin Abrams is an independent technical analyst. To subscribe to more recommendations by the author, or attend trading courses, please go to www.themarket.co.za

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

anglogold  |  gold  |  markets  |  mining  |  companies  |  equities
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