Newcrest: Upside Sustainable

Technicals | Mar 14 2023

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)).

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