Emerging Sell In Newcrest

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

By Nick Linton-Ffrost

Trading tactics

Wait for a lower high to form between 9.00 and 9.80 before looking to open shorts. Potential downside around 8.00.

Rationale

We suspect Newcrest Mining ((NCM)) will correct some if not all of the rally from 7.00 to 9.80. After achieving the target from the break of the trend line around 8.00 and tracing out a rough five wave count the odds have improved for a pull back over the next few days.

Before considering opening shorts we require the formation of a lower high. A break of the uptrend line comes into play around 9.00 however we suggest waiting for a confirmation of that level before trading.
 

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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