Newcrest Poised For A Breakout

This story features NEWCREST MINING LIMITED. For more info SHARE ANALYSIS: NCM

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By Nick Linton-Ffrost

Trading tactics

Buy a confirmed break above 9.85 placing stops at 9.40 looking for a move to 10.50-10.80.

Otherwise short a confirmed break below 9.20 placing stops at 9.70 and looking for a move to 8.25.

Rationale

The rally in Newcrest Mining ((NCM)) has traced out three waves in the move up from 7.00 and has been trading in a sideways pattern for the last 6 days.

If this pattern is a continuation pattern a break above 9.80 indicates the move is most likely a 5th wave and last move in the rally from 7.00 and should only take a few days to achieve the 10.80 target before pulling back to 9.00.

Otherwise a break below 9.20 indicates a topping pattern and a confirmed trend line break implying a move to 8.25.
 

Another trading idea from

Fifth Wave | fwtc.com.au                                               

FW generates over 150 Trading Alerts on the ASX100 each year. We are a subscription service specialising in short term technical strategies based on 27years experience.

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