Kinross Gold Corporation (KGC) technical analysis: Which way the stock is headed?

Kinross Gold Corporation (NYSE:KGC) fell by -1.78% in Thursday’s trading session from $3.94 to $3.87 and has now fallen 6 consecutive sessions. The price has fallen in 8 of the last 10 days and is down by -13.03% over the same course of time. There was a decrease in both volume and price. This is usually interpreted as a good sign as traders widely believe falling stock should see declining volume. Traded activity experienced a fall of -2.27 million shares and in total 9.02 M shares exchanged hands for about $34.89 million.

Inside KGC’s Recent Trend

Kinross Gold Corporation (KGC) has broken the wide and horizontal trend down. Breaks like this are often followed by swift and strong movements, and any correction down to the breakline at approximately $3.98 is considered to be a second chance to get out before further fall. It is, however, important to note that false breaks may appear and that the price may move back into the horizontal trend. A break on increasing volume is considered to be more significant and reliable than breaks on low volume.

Kinross Gold Corporation Technical Signals

KGC has witnessed its long term and short term MA triggering a sell signal. Many traders watch for long-term averages to cross above short-term averages to signal the beginning of a downtrend. Upon corrections, the price will meet resistance from the averages between $4.10 and $4.35. A buy signal will be generated if it crosses above any of these levels. Its pivot point high generated sell signal on Thursday October 12, 2017, which calls for additional declines until the stock forms a new pivot point low, as this could be a buying opportunity. The downbeat movement of both volume and price during the recent session is interpreted as a good sign because traders usually believe falling stock should see declining volume.

Kinross Gold Corporation (NYSE:KGC) Support And Resistance Levels

There is no support from accumulated volume below today’s level and given the right condition the stock may perform very badly in the next couple of days. In case of gains, the next resistance from accumulated volume will be at $4.12, $4.18 and $4.28.

Kinross Gold Corporation (KGC) Risk Assessment

The number of shares changed hands in the stock is good, indicating the interest and low risk associated with it. In the most recent session, the stock price hovered around $0.12 (3.12%) between intraday high and intraday low. Each day in the past 1 week, the average volatility remained at 2.70%.

Kinross Gold Corporation (KGC) is in oversold territory based on Relative Strength Index reading (26). In some cases it takes more time for the trend to shift while the stock is being oversold and the Relative Strength Index keeps moving.

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