Anglogold shows how fear trades can cause traders to be irrational, buyers are moving in at current price, there is quite a distance from 200 day moving average while price is testing the upper resistance of a broadening wedge. History does not repeat but often rhymes, ANG had a similar broadening setup from March 2020 lows that morphed into a long bearish trend. It might not repeat the same given the geo-political tensions but sharp reversal can be expected, the RSI is overextended. This is not the place to be sucked in by FOMO but rather seek better opportunities if wanting to be in the gold trade.
Comment:
Having been rejected at the resistance, Anglogold is back to at it, will it be twice lucky or will be pushed back again to cool the indicators, odds favour a pullback.
Comment:
Anglogold did not waste time after being rejected, now at the support of the broadening wedge, we can expect a bounce from here as it coincides with the 200 day moving average nearby.