Harmony Gold Shares Rebound 7%: JSE: HAR Breakout Looms as Gold Nears $3,400
Harmony Gold's recent share price surge hints at a potential return to bullish territory as gold edges near record highs.
Quick overview
- Harmony Gold's share price has rebounded sharply in July, marking a potential return to bullish territory.
- The stock recently broke above the 50-day simple moving average, signaling renewed investor interest.
- Gold prices are nearing record highs, driven by geopolitical tensions and economic uncertainty, benefiting gold producers like Harmony.
- With strong production guidance and impressive financial results, Harmony Gold may present a compelling opportunity for investors.
Harmony Gold’s recent share price surge hints at a potential return to bullish territory as gold edges near record highs.
July Rebound Sets the Stage
Harmony Gold Mining Company Limited (JSE: HAR) appears to be regaining its shine. After sliding roughly 10,000 ZAC from its all-time high of 34,045 ZAC set in mid-April, the HARJ share price has begun to rebound sharply this July. Monday, July 21, marked a pivotal session, with shares jumping 7.5% in a single day—the strongest daily gain since early April—sending a clear signal of bullish interest returning.
HARJ Chart Daily – Breaking Above the 50 SMA
This latest surge brought HARJ shares back above the 50-day simple moving average (SMA), an important technical milestone that had been acting as resistance for several weeks. If bulls can hold above this level and push through the 20-week SMA, currently capping the price near the 28,000 ZAC zone, it could open the door for a move toward 36,000 ZAC.
Gold Nears Record, Fueling Demand
Gold itself has also seen renewed buying interest, rising 1.5% today and approaching the $3,400 per ounce level. Global geopolitical tensions and economic uncertainty continue to drive demand for safe-haven assets. This macro backdrop remains highly supportive for gold producers, and Harmony—South Africa’s largest by volume—stands to benefit substantially.
With a 75% gain year-to-date from the January lows, Harmony Gold is among the JSE’s top-performing stocks of 2024. That performance comes during a period of broad weakness in many other South African equities, underlining the defensive appeal of gold.
Market Outlook and Resistance Test
Although HARJ shares are still far off their record highs, the recent move above the 50 SMA and the ongoing test of weekly resistance around 28,000 ZAC suggest momentum may be building again. The challenge remains whether buyers can overcome this resistance, which has repeatedly capped price gains for weeks. A sustained breakout above that threshold could mark the next leg higher.
HARJ Chart Weekly – Still Facing the 20 SMA
A number of traders now see this week as pivotal. If the stock can hold above the 20-week SMA, many technical analysts would view that as confirmation of renewed upside momentum.
Growth Strategy and Financial Strength
Fundamentally, Harmony Gold continues to impress. Its production guidance for fiscal 2024 estimates output of 1.56 million ounces, with operations spanning South Africa and Papua New Guinea (PNG). The Wafi-Golpu copper-gold project in PNG and the Eva Copper project in Australia provide longer-term growth options as well.
Earlier this year, Harmony reported interim results that showcased its strong operating leverage in a high-gold-price environment. Revenue surged 18% to R37.1 billion, while net income jumped 33% to R7.9 billion. Gold revenue itself rose by 19%, accounting for the lion’s share of the company’s margin improvement.
Conclusion: A Golden Opportunity?
Despite the recent dip from April highs, Harmony’s price action suggests the long-term trend remains intact. With gold pushing higher and investor sentiment returning, a breakout above key resistance levels could reignite the rally. For bullish investors, this may be the time to watch closely—or even start building a position.
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