AngloGold Ashanti plc (JSE: ANG), a key player in the gold mining industry, experienced a surge in its share price after rising over 2.6% during the session on Wednesday, following a fall in the US dollar and treasury yields on cooler-than-expected US inflation. This uptrend aligns with the broader increase in gold prices, with gold spots (XAUUSD) surging over 1.7% for the week. Despite a month-to-date dip, today’s positive performance indicates a potential reversal for ANG.
The positive momentum is also backed by AngloGold’s Q3 gold production increase of 3%, reaching 673,000 ounces. This growth is attributed to higher processed ore tons despite variations in production across its mining sites. With reaffirmed annual production guidance for 2023 and strategic initiatives like the Gramalote project sale, AngloGold exhibits resilience and a commitment to growth.
Technical
The daily chart shows that the share is currently trading at 31,537 cents, trading over 2.5% higher on Wednesday’s trading session after a cooler-than-expected US inflation report. The stock’s price, currently trading well below the 50-SMA (green line), 100-SMA (blue line), and 200-SMA (red line), suggests potential challenges for a sustained upward move, with the 50-SMA likely to provide immediate resistance higher.
Short-term trading opportunities could exist towards the 50-SMA enforced resistance level at 32,8177 cents should the bulls sustain a push higher. A break above the initial resistance would likely bring the 34,813 cents and 37,482 cents resistance levels into play.
However, failure to sustain a push higher could offer short-term trading opportunities towards the 29,527 cents. A break below the initial support would likely bring the 27,038 cents support level within the bears’ reach in the short term.
Summary
AngloGold Ashanti demonstrates a nuanced blend of fundamental strengths and technical potential, indicating potential growth. The positive production outlook, strategic ventures, and recent technical movements suggest a potential shift in the stock’s trajectory.
Investors should closely monitor the pivotal 50-SMA level, as a breakthrough could signal a bullish trend continuation. Resistance at 34,813 cents and 37,482 cents could present potential profit-taking levels for traders. On the downside, a failure to break above the 50-SMA might lead to short-term opportunities towards 29,527 cents, with further support at 27,038 cents potentially coming into play.
Sources: TradingView, Trading Economics, AngloGold Ashanti plc, Dow Jones Newswire, Reuters, MT Newswire.
Piece written by Mfanafuthi Mhlongo, Trive Financial Market Analyst
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