Newcrest set for more downside on bearish gold move

Saxo Capital Markets traders believe Newcrest’s shares will continue to weaken in the near future. Until recently the mining group’s stocks remained capped by a negative downward trend channel, which was recently broken. With the continuous selling pressure in the gold price, Saxo believes it's inevitable that gold will soon see US$1,000 per ounce, as the market will probably want to test this big psychological level. Secondly, the stock has reversed and re-established its bearish formation since making a low in December 2013 at AUD $6.93. Its Fibonacci retracement back to AUD $15.34 in May 2015 was a 23.60% top to bottom and the stock was unable to push higher. Newcrest shares have also drop from the 200-day moving average, so further declines are expected. With this context in mind, a short trade is suggested. To read more visit: (VIEW LINK)