Newcrest: Upside Sustainable

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

By Michael Gable 

It is a bit of an understatement to say that a lot has happened in the past week. We had encouraging commentary from the RBA last Tuesday that mean rate hike expectations in Australia could be eased back. Then the US Federal Reserve chairman did the opposite and by the end of the week the prospect of higher rates in the US combined with the SVB failure led to plenty of panic selling. Then in the past 24 hours, we have seen the prospects of a 50bps rate hike next week in the US fall from an almost certainty to a chance of only 28 per cent. US CPI numbers are out tonight so that will be the next catalyst to keep an eye on.

The energy and materials sectors are finding some good support here and we continue to rate those as the top sectors to remain exposed to. Given the volatility that has emerged in the past few days, we will need to wait a little longer for any clear buy signals. However, we have a few charts this week to set the scene for some possible opportunities that may be around the corner.

Our chart this week is on Newcrest Mining ((NCM)).

We looked at NCM in both November and January and noted that it should continue to head higher. The past several days has seen it come back to the uptrend line and bounce off it. This uptrend continues to look sustainable and NCM remains a buying opportunity while it is trading near the lower part of this channel.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services. 

Michael is RG146 Accredited and holds the following formal qualifications:

• Bachelor of Engineering, Hons. (University of Sydney) 
• Bachelor of Commerce (University of Sydney) 
• Diploma of Mortgage Lending (Finsia) 
• Diploma of Financial Services [Financial Planning] (Finsia) 
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2

Disclaimer

Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
 

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