Harmony Gold Rally Not Over Yet, JSE: HAR Share Price Tests Crucial Resistance
After a massive rally in early 2024, Harmony Gold's share price is pulling back from its peak, testing critical technical resistance...
Quick overview
- Harmony Gold's share price has retreated from its mid-April peak of 34,045 ZAC, settling around 24,000 ZAC after a 10,000 ZAC decline.
- Despite the pullback, Harmony Gold remains one of the best-performing stocks on the JSE in 2024, with a 65% increase since January.
- The company's strong financial results, including a 42% forecast increase in interim earnings, support its resilient performance amid broader market volatility.
- Technical resistance at key moving averages is currently capping further upside, with investors closely monitoring gold price trends for future direction.
After a massive rally in early 2024, Harmony Gold’s share price is pulling back from its peak, testing critical technical resistance despite strong fundamental gains.
From Record Highs to a Pullback
Since peaking in mid-April at 34,045 ZAC, Harmony Gold Mining Company Limited (JSE: HAR) has seen its share price retreat by roughly 10,000 ZAC, settling around the 24,000 ZAC mark. While the recent decline has cooled some of the market’s enthusiasm, Harmony Gold remains one of the best-performing stocks on the JSE in 2024, boasting a 65% increase since early January.
This performance stands out in a year when many South African equities have struggled with volatility and broader market headwinds. Despite its short-term decline, Harmony Gold’s price action reflects resilience and a still-strong underlying uptrend when viewed over a multi-month timeframe.
A Historic Surge in Early 2025
Harmony Gold’s rally this year has been nothing short of extraordinary. From trading at just 15,000 ZAC in January, the stock skyrocketed 132% by mid-April to touch over 35,000 ZAC.
This surge unfolded even as broader market sentiment turned cautious, fueled by fears over global trade disputes and tariff escalations that pressured equities worldwide. Harmony Gold defied that environment, benefitting from investor demand for safer assets and the tailwind of soaring gold prices.
Gold Prices Fueling the Rally
A major catalyst for Harmony Gold’s move was the continued strength in gold itself. In April, gold reached a new all-time high of $3,500 per ounce, as escalating trade tensions and geopolitical uncertainty sent investors rushing to gold and gold mining equities as havens.
However, since April’s peak, the gold price has failed to set fresh records, instead stabilizing while still maintaining a pattern of higher lows. This moderation in gold’s momentum has contributed to profit-taking and pullbacks in the share prices of many gold-focused miners, including Harmony.
Strong Financial Results Underpin the Trend
Fundamentally, Harmony Gold’s outlook has remained robust. Earlier this year, the company forecast interim earnings up to 42% higher, confirming strong operating leverage in a high-gold-price environment.
Revenue climbed 18% to R37.1 billion from R31.4 billion in the prior period, while net income surged 33% to R7.9 billion from R5.96 billion. Gold revenue itself was a big driver, jumping 19% to R35.4 billion from R29.7 billion.
These numbers underscore the company’s ability to convert rising gold prices into stronger margins and profitability—helping justify the stock’s outperformance relative to much of the broader market.
Technical Resistance Capping the Rebound
Despite its strong fundamentals and last week’s 5% gain, Harmony Gold’s share price is running into technical resistance that has capped further upside. The 20-week simple moving average (SMA) (gray) and key daily moving averages have proven stubborn barriers in recent sessions.
To end the Q2 retreat decisively and revive its powerful uptrend, buyers will need to push the stock price above these critical moving averages. A breakout above these levels could signal renewed momentum and potentially a return to testing those record highs set in April.
Looking Ahead: While the recent slide has cooled sentiment, Harmony Gold remains a standout performer on the JSE for 2024. Investors and traders will now be watching both gold price trends and technical levels closely to determine if the stock’s correction is nearing its end—or if further consolidation lies ahead before the next leg higher.
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