August 28 Chart of the Day - Harmony Gold Mining Company

Highly precise price action technical analysis offers the strongest trading edges and the most opportunities across the markets, making it the foundation of our reviews.

Harmony Gold Mining (HMY) shares dropped 14% today after announcing earnings before the market open.

The decline comes on the heels of a massive rally off multi-year lows, leaving traders to ask whether this is routine profit-taking or the start of a deeper pullback.

The charts give us important clues.

We'll review the chart from a price action perspective to identify potential levels of interest in both directions.

Consistent profitable investing and/or trading requires a structured, rules-based approach to price action analysis. Proven processes, disciplined risk-reward management, and precise execution create the foundation for long-term success.

When combined with powerful mental performance strategies, this method becomes the ultimate blueprint for thriving in any market, on any time frame. 

As requested, this analysis will take a price action technical analysis approach to assess key levels and potential next price moves for this chart.

Since May 2023, we've showcased over 575+ Charts of the Day and provide a Free Quick Start Guide to traders with ambitious income goals for our patent-pending NeuroTrading Method™.

Monthly Chart 

On the monthly chart, price surged from under a dollar to recent highs near $19 before pulling back into the mid-teens.

The long gray rectangle highlights a change control zone. Change control zones are one of the five price action tools we teach when charting anything.

By definition, they are an area that represents where neither the bulls nor bears are in charge. Price can slash through the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it. Or, price can trade aimlessly sideways within it. When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.

Price may soon be testing the upper edge of that zone, making this area critical for future direction.

With plenty of volatility traders have had much to be happy with while investors seemingly have been disappointed.

This kind of movement highlights why a cautious and well-informed approach is essential when evaluating a stock’s short to mid term outlook.

Weekly Chart

On the weekly chart, the story sharpens. The explosive rally into the $16–$19 range was met with heavy resistance, driving price back towards the change control zone where it currently sits near $12–$13. 

Momentum has slowed, and the candles reflect indecision. A breakdown through the bottom of the zone could trigger a deeper retrace toward $11 or even the 50 percent Fibonacci retracement levels.

Conversely, a successful defense here followed by a move back above $15 would suggest the uptrend is reasserting itself.

It goes without saying though, the only guarantee in the markets is that price cycles.  It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.

Only time will tell for sure what price will do next...

We’ve combined Fibonacci levels with key support/resistance zones and trend analysis to pinpoint potential price levels of interest and future targets.

With precision-focused charts like these, both traders and investors can confidently build and execute their strategies.

So what's next? 

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