The price of Spot Gold has been trading in a broad “pennant” formation since early January.
The range of this pennant are bound by the January 25th high of $1365 and the March 19th low of $1307.
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We believe that the balance of fundamental and technical analysis supports the idea that the pennant will be resolved to the upside with Gold trading back above $1365.
The share price of NCM has been beaten down about 15% since a tailing dam failure at their Cadia mine in NSW in early March.
With their quarterly production report scheduled to be released on April 26th, we believe the stock has found a solid base in the $19.40/50 area for a move back into the $22.00 handle over the medium-term.
Newcrest Mining
Spot Gold
