Newcrest Mining is a gold mining company with operations in Australia, Canada, and PNG.
“Because of the inverse correlation between the gold price and the US dollar” Michael said “we’re seeing strength in the gold miners on the back of a possible peak in the US dollar. “Analysis of the NCM chart reveals that a low is most likely in place.
“Price action across September and October resembles an inverse head and shoulders (circled), which is often the sign of a low.
“Then the gap up in early November to get out of this formation was on very high volume, which was a positive. “Since then, we can see that the stock has been stepping higher in a sustainable way.
“Volumes are healthy on the way up, and then they drop off on any pullbacks.
“There is a good chance that NCM shares continue to trend higher from here,” Michael concluded.
Newcrest Mining (NCM)
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