new look for newcrest, page-29

Newcrest Poised For A Breakout
FNArena News - February 03 2014

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.