Mathan Somasundaram

The chart below shows Newcrest (NCM) over 20 years delivering a “Golden Cross” as 12-month moving average (MA) breaks above 24-month MA and 36-month MA. Our positive view on the spot gold post-US Fed rate hike in December has seen the spot gold break it’s down trend and US Fed update overnight further support more upside. NCM has gone through 5 years of painful cost cutting and will now enjoy the benefit of rising spot gold with relatively low-cost base. NCM is the new QAN. The cycle has turned positive after management delivered the dirty work at the bottom of the cycle. Now it has clear air with rising spot gold due to weakening USD and rising market risk. (VIEW LINK)


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