Saxo Capital Markets traders believe Newcrest’s shares will continue to weaken in the near future. Until recently the mining group’s stocks remained capped by a negative downward trend channel, which was recently broken. With the continuous selling pressure in the gold price, Saxo believes it's inevitable that gold will soon see US$1,000 per ounce, as the market will probably want to test this big psychological level. Secondly, the stock has reversed and re-established its bearish formation since making a low in December 2013 at AUD $6.93. Its Fibonacci retracement back to AUD $15.34 in May 2015 was a 23.60% top to bottom and the stock was unable to push higher. Newcrest shares have also drop from the 200-day moving average, so further declines are expected. With this context in mind, a short trade is suggested. To read more visit: (VIEW LINK)



Comments

Please sign in to comment on this wire.