Harmony Gold Mining Company Ltd (JSE: HAR) has been on a notable upward trajectory, showcasing a consistent upward momentum in its share performance. Today, the company’s shares surged by 0.93%, contributing to a robust month-to-date increase of 19.13% and an impressive year-to-date surge of 75.01%. These gains align with recent market movements, where gold miners, including Harmony Gold, have risen in response to a weakened dollar and falling Treasury yields.
The company’s operational update for Q1FY24 also revealed a substantial 17% increase in group gold production, leading to a commendable 33% rise in gold revenue. Moreover, Harmony Gold’s strategic focus on copper mining signals a significant shift in future growth prospects.
Technical Analysis
The daily chart shows that Harmony Gold’s current price stands at R102.92, trading consistently around a significant level. The moving averages indicate a favourable position, with the stock trading above the 50-SMA (blue line), 100-SMA (orange line), and 200-SMA (red line), indicating the market is tilted in favour of the bulls. However, the recent cross between the 50-SMA and 100-SMA could suggest a potential change in short-term momentum. The Relative Strength Index (RSI), currently at 67.41 with an upward trend, implies a possibility of nearing overbought levels.
Therefore, the share appears poised for short-term bullish moves, with resistance levels at R108.41 and R115.35 in sight if the current level sustains a push higher. However, the proximity of the RSI to overbought levels might prompt a brief pullback towards the support level at R96.40. Further downside could see the stock testing support at R85.67.
Summary
Harmony Gold’s stellar year-to-date performance aligns with positive market sentiment for gold miners. The fundamental strength, coupled with technically favourable conditions, positions Harmony Gold for potential upward moves towards R108.41 and potentially R115.35 in the short term.
However, investors could exercise caution, given the proximity to overbought levels, and monitor key levels such as the R96.40 support level, which could come into play should a short-term pullback materialize.
Sources: TradingView, Dow Jones Newswire, Harmony Gold Mining Company, Investing.com, Reuters, MT Newswire, PR Newswire, Seeking Alpha, BusinessLive.
Piece written by Mfanafuthi Mhlongo, Trive Financial Market Analyst
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