Shorting Newcrest with a $17 target

by Michael Gable

I have been negative on NCM since September last year when gold dropped over $100 in one day, and the stock has progressively fallen away since, due in part to a correcting gold price, and cost issues in Lihir. Towards the end of 2011, we can see that the stock broke out of a consolidation zone, came up to retest the apex, and then fell away again. As we can see on the chart above, the same thing has happened again, albeit on a smaller scale. At this rate, NCM is on track to retest the 2008 lows under $17. Traders can therefore short NCM but place a stock just above last week's high.


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.

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