Pattern Play Kinross Gold
Kinross Gold has broken out to the upside of a falling wedge pattern.
Share this:
Kinross Gold (KGC), a Canadian based senior gold producer, broke out to the upside of a falling wedge pattern on Wednesday, September 9th. The breakout was confirmed after price closed above the upper trendline. The MACD line is beginning to turn up and appears to be on the verge of crossing above the signal line, a bullish indication. As a gold producer, Kinross's performance is intimately tied to the price of Gold, and Gold has an inverse relationship with the US Dollar Currency Index (DXY). On Wednesday, September 9th, the US Dollar Currency Index had its first red day after a 6 day rally. On Thursday, September 10th, the US Dollar Currency Index broke to the downside of a short-term bullish trendline that the Index was holding above.
Kinross's stock price has been in a long-term uptrend and a falling wedge is considered to be a continuation pattern. Price will likely resume its uptrend and advance to its 2020 high of roughly 10.25. If price can breakout above the 10.25 resistance level, then it should continue to rise to 11.25, a level last reached in 2012. As long as price holds above the upper trendline the bias should remain bullish. If price closes below the upper trendline of the falling wedge pattern then price may drop to the 8.25 support level, where it could possibly bounce. If price breaks below the 8.25 level, it would be a bearish signal and price could continue to fall to 7.50.
Source: GAIN Capital, TradingView
Kinross's stock price has been in a long-term uptrend and a falling wedge is considered to be a continuation pattern. Price will likely resume its uptrend and advance to its 2020 high of roughly 10.25. If price can breakout above the 10.25 resistance level, then it should continue to rise to 11.25, a level last reached in 2012. As long as price holds above the upper trendline the bias should remain bullish. If price closes below the upper trendline of the falling wedge pattern then price may drop to the 8.25 support level, where it could possibly bounce. If price breaks below the 8.25 level, it would be a bearish signal and price could continue to fall to 7.50.
Source: GAIN Capital, TradingView
Kinross Gold (KGC), a Canadian based senior gold producer, broke out to the upside of a falling wedge pattern on Wednesday, September 9th. The breakout was confirmed after price closed above the upper trendline. The MACD line is beginning to turn up and appears to be on the verge of crossing above the signal line, a bullish indication. As a gold producer, Kinross's performance is intimately tied to the price of Gold, and Gold has an inverse relationship with the US Dollar Currency Index (DXY). On Wednesday, September 9th, the US Dollar Currency Index had its first red day after a 6 day rally. On Thursday, September 10th, the US Dollar Currency Index broke to the downside of a short-term bullish trendline that the Index was holding above.
Kinross's stock price has been in a long-term uptrend and a falling wedge is considered to be a continuation pattern. Price will likely resume its uptrend and advance to its 2020 high of roughly 10.25. If price can breakout above the 10.25 resistance level, then it should continue to rise to 11.25, a level last reached in 2012. As long as price holds above the upper trendline the bias should remain bullish. If price closes below the upper trendline of the falling wedge pattern then price may drop to the 8.25 support level, where it could possibly bounce. If price breaks below the 8.25 level, it would be a bearish signal and price could continue to fall to 7.50.
Source: GAIN Capital, TradingView
Kinross's stock price has been in a long-term uptrend and a falling wedge is considered to be a continuation pattern. Price will likely resume its uptrend and advance to its 2020 high of roughly 10.25. If price can breakout above the 10.25 resistance level, then it should continue to rise to 11.25, a level last reached in 2012. As long as price holds above the upper trendline the bias should remain bullish. If price closes below the upper trendline of the falling wedge pattern then price may drop to the 8.25 support level, where it could possibly bounce. If price breaks below the 8.25 level, it would be a bearish signal and price could continue to fall to 7.50.
Source: GAIN Capital, TradingView
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Gold Q4 2026 outlook: Resilience in the face of rallying dollar and yields
As we headed towards the latter stages of Q3 and into Q4, the Fed had just hiked rates in a hawkish FOMC meeting, while the likes of the ECB and BoJ had also tightened their respective policies. Oil prices remained elevated amid the prolonged US-Iran conflict. Meanwhile, bond yields were breaking out, and the dollar was higher across the board. Yet, remarkably, gold was still holding in the positive territory for the third quarter, even if it had weakened somewhat in September.
Gold forecast: XAU/USD could take a larger dive after the big rise in yields
Gold prices have been falling in the last few days after last week’s post-FOMC pop faded amid rising interest rate expectations, higher oil prices and a strengthening US dollar. As before, I wasn’t convinced gold would thrive in the current macro backdrop.
Gold, silver slammed as hawkish Fed repricing reignites dollar upside
Gold and silver had held up surprisingly well against surging US yields. Wednesday’s DXY breakout may have changed that equation.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.