AngloGold Ashanti Tactical Shorts Generating Cash: Overshoot & Failure

Trade AngloGold Ashanti with Unum Capital.

To get started, email lester@unum.co.za

The move is also in line with the price action model reading which warned against buying.

R649 back down to R611.

The white dotted line represents the multi-year resistance trend line as referred to in the previous post.

There are opportunities for active traders to get in, get out and get paid!

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Previous Post (Tuesday 18 March): Trading AngloGold Ashanti: Approaching Multi-Year Resistance

High bullish momentum however approaching Multi-year resistance at ~R638, however expect a potential overshoot to the upside. Here, traders should be looking for a failure to hold these highs.

In the long term (5-8 weeks), ANG is exhibiting aggressive buying, indicating a strong upward trend. However, traders are advised to wait for a pullback before entering a long position. Alternatively, if the highs fail to hold, a short position back to the 8 or 21-EMA is suggested. The medium term (2-4 weeks) confirms this bullish sentiment, showing that ANG has resumed a bull move within a strong upward trend. In the short term (1-10 days), there's aggressive buying, but traders should avoid chasing the price. Instead, they should look for an overshoot or failure to hold the prior session's range highs to potentially short-sell back to the 8-EMA.