$JSEANG - AngloGold Ashanti: Great Run, But I Count Fives Waves
Anglo Gold Ashanti has had a great run from the September 2022 bottom at 21300.
The banking crisis of the last few weeks has triggered a surge in gold as a safe haven buy and subsequently gold stocks.
Looking at the charts, I see textbook five wave advance from 21300 to the current price.
Wave 1 is relatively small and deeply retraced by wave 2.
Wave 3 is extended and retraced just over 50% by wave 4.
Wave 5 can still push high but at this stage I would not chase it and the pullbacks have been swift, not providing good entry points.
There is no technical weakness yet in the share price but commodity stocks can reverse aggressively once investors take on risk again.
At this stage I will sit on my hands on look for reversal signs.
The banking crisis of the last few weeks has triggered a surge in gold as a safe haven buy and subsequently gold stocks.
Looking at the charts, I see textbook five wave advance from 21300 to the current price.
Wave 1 is relatively small and deeply retraced by wave 2.
Wave 3 is extended and retraced just over 50% by wave 4.
Wave 5 can still push high but at this stage I would not chase it and the pullbacks have been swift, not providing good entry points.
There is no technical weakness yet in the share price but commodity stocks can reverse aggressively once investors take on risk again.
At this stage I will sit on my hands on look for reversal signs.
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