My view on the chart of Newcrest (NCM)

by Michael Gable

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Newcrest has run well the last few months along with the tick up in the gold price. Since mid February however, you will notice that as the share price was heading higher, momentum was dropping on the RSI. This divergence has now pushed NCM out of its recent uptrend. The breaking of this uptrend was done on fairly high volume, as investors became nervous about the US Federal Reserve’s next move. With tapering still underway and interest rates in the US looking to tick up sooner than expected, the gold price will continue to be under pressure. NCM has some support around $9.80, but considering how impulsive the move down is, I would expect that support to not hold for long. NCM is still in a longer term downtrend. The arrows on the chart show you that it has once again formed another “lower high”. As a result, it could potentially form another “lower low” which would imply levels under $7. If it can find a good low above $7, then NCM starts to look interesting again on the long side.

Disclaimer

Disclaimer: Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.