• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock AU Surges Above Resistance: Here’s How to Take Action
Stock

AU Surges Above Resistance: Here’s How to Take Action

by April 1, 2025
by April 1, 2025 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

As precious metals surge on safe-haven demand, some gold mining companies are following suit. One standout is AngloGold Ashanti Ltd. (AU), which has been riding this upward momentum.

Recently, AU showed up among the Top 10 Large Cap category in the StockCharts Technical Rank (SCTR) Reports, indicating that it’s among the top large-cap stocks showing bullish technical strength across multiple timeframes and indicators.

FIGURE 1. SCREENSHOT OF SCTR REPORTS ON MONDAY MORNING. AU, which held the #6 spot at the time of the screenshot, had an ultra-bullish SCTR score of 99.3.

Unless you follow gold miners, you may not know much about AU. But here’s the skinny: AngloGold Ashanti Ltd. is a global independent mining company that’s incorporated in the UK but headquartered in Colorado, US. 

AU’s recent surge can be attributed to several factors, including rising gold prices, strong financials, recent strategic acquisitions, revised dividend policy, and general investor shift to safe havens.

If you’re unfamiliar with the stock, a good starting point is to compare its relative performance against its industry (Dow Jones Gold Mining Index or $DJUSPM) and spot gold price performance ($GOLD). The PerfChart below displays AU’s performance relative to the industry and gold’s price over the past year.

FIGURE 2. PERFCHARTS OF AU, DJ GOLD MINING INDEX, AND GOLD. AU began outperforming its overall industry and gold’s performance in late January.

AU and $DJUSPM have shown volatile, back-and-forth price action over the past 12 months, but AU began taking the lead in late January, surpassing both in comparative terms.

Now that you have a comparative view, let’s take a longer-term look at AU’s price action. Here’s a monthly chart spanning 20 years. Why so long? I had to go this far back to plot long-term resistance levels.

FIGURE 3. MONTHLY CHART OF AU. The stock just broke above a resistance range between $35 and $37, but there are plenty more technical headwinds above.

AU appears to be soaring at relatively high valuations and is running up against a major resistance range between $42 and $45. What adds weight to the long-term bullish case of AU’s current valuations is the rising Ichimoku Cloud, indicating a long-term uptrend projection (26 months) and a Relative Strength Index (RSI) reading that is rising but not quite overbought. Another thing to note, which is interesting, is that every time the RSI crossed 70, AU reversed to the downside. 

Despite this bullish projection, keep in mind that AU could still pull back—while remaining in a long-term uptrend—and decline to as low as $22.50 before rebounding. This level marks a key swing low and aligns with the top of the Ichimoku Cloud’s support range.

That gives us a long-term perspective. What about the near term? Might there be a favorable entry point for those looking to go long, or is AU technically overbought? 

Let’s shift over to a daily chart.

FIGURE 4. DAILY CHART OF AU. Pay attention to the most recent swing high and low.

The Gold Miners Bullish Percent Index (BPI) indicates strong bullish breadth as over 89% of gold mining stocks are rallying and triggering P&F buy signals. However, this can also indicate potential overbought levels, and the RSI supports this reading, as it, too, is over the 70 threshold (caveat: a stock can continue to rally for an extended period despite being overbought).

Volume-wise, note how accumulation preceded AU’s rally as far back as September when the Accumulation/Distribution Line (ADL) shown in orange began rising above AU’s price as if the smart money began accumulating the stock as it continued to decline before rebounding. AU currently trades above the ADL line, which could signal a near-term pullback. 

Pay attention to AU’s price relative to its most recent swing high (magenta dotted line) and swing low (blue dotted line). I plotted a ZigZag line to make these swing points clear. 

If AU pulls back, it may find support at the swing high near $33. What’s more important is that the stock price must hold above the swing low near $28 to sustain the current uptrend.Expect resistance between $42 and $45 (as mentioned earlier when analyzing the monthly chart).

What Should You Do?

If you’re already in AU and not necessarily committed to the long term, consider tightening your stops or scaling out partial profits as the stock approaches the $42–$45 resistance zone. The RSI above 70 and elevated breadth readings across the gold mining sector suggest short-term overbought conditions, making a pullback likely—even within a broader uptrend. Watch for any bearish divergences or volume reversals, and use a bounce from $28 or $33 to potentially add to your position.

If you’re looking to enter, patience may pay. A retracement to the $33 support zone—or the swing low at $28 if sentiment reverses sharply—could offer a more favorable risk-reward entry. Keep in mind that a break below $28 would weaken the current technical structure and could open the door to a deeper correction, potentially down to $22.50.

For long-term investors, AU still holds promise. The rising monthly Ichimoku Cloud you saw in the monthly chart, strong accumulation trends, and outperformance vs. peers support a bullish longer-term case. But stay disciplined, and keep an ear on economic developments that may have a longer-term impact. Consider using a tiered entry approach rather than chasing highs.

In short, AU’s long-term momentum is intact, but don’t ignore the warning signs of a short-term cooldown. Stay tactical—ride the trend, but always protect your capital!

At the Close

While AU continues to ride the wave of bullish sentiment in the gold sector, a few of its technical indicators, appearing seemingly stretched, hint at a possible short-term breather. Long-term prospects remain intact, but near-term caution is warranted.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

You Might Also Like
  • Investors Await CPI and Bank Earnings: Will They Spark Investor Optimism?
  • Momentum is Back, Breadth Rallies; It’s Truth Time for OPEC and Crude Oil
  • GNG TV: XOP’s Strength vs. the S&P’s Weakness
  • Stocks: “…a PERMANENTLY high plateau”?
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Elon Musk says backlash against his DOGE government cuts is hurting Tesla stock
next post
Restaurant chain Hooters files for bankruptcy protection to enable founder-led buyout

You may also like

Consumer Sector ETF XRT Has Some Words for You

May 31, 2023

The Biggest Mistake Traders Make!

January 18, 2024

Post Tech Earnings & FOMC — Give Retail Investors Credit

February 1, 2024

Week Ahead: Markets Approaches Union Budget In A Bruised State;...

January 28, 2023

NYSE A-D Line Adds to the List of Divergences

May 11, 2023

Three Defensive Plays for Post-Tariff Survival

April 3, 2025

This Combination Makes Trading Next Week VERY Dicey

December 9, 2023

Long Bonds Continue to Break Down

January 17, 2025

Tips n’ Tricks to Instantly Enhance Your Chart Annotating

June 2, 2023

Bearish Formation Threatens Gold’s Advance

December 13, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • From Tariffs to Tech: Where Smart Money’s Moving Right Now

      June 6, 2025
    • Your Weekly Stock Market Snapshot: What It Means for Your Investments

      June 6, 2025
    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

      June 6, 2025
    • Big Rally Ahead Should Yield All-Time High on This Index

      June 6, 2025
    • Silver’s Surge is No Fluke—Here’s the Strange Ratio Driving It

      June 6, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,797 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,503 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,484 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,464 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,341 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,121)
    • Investing (538)
    • Stock (2,597)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • From Tariffs to Tech: Where Smart Money’s Moving Right Now

      June 6, 2025
    • Your Weekly Stock Market Snapshot: What It Means for Your...

      June 6, 2025
    • Procter & Gamble to cut 7,000 jobs as part of...

      June 6, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,121)
    • Investing (538)
    • Stock (2,597)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Quantum Computing Stocks: Why You Should...

    December 26, 2024

    Opportunities in Industrials and Materials

    September 27, 2024

    Simple Way to Find Confluence FAST...

    November 14, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here