The Australian stock exchange has seen its best performing week in 13 months, but the Newcrest share price failed to respond to the bullish triggers as new COVID woes from China weighed on commodity stocks.
The previous week, the Newcrest share price jumped 3.19% after the company concluded the acquisition of Pretium Resources. This acquisition gives Newcrest access to the Brucejack mine in Canada’s Golden Triangle region. This marked the 4th week of price gains in the Newcrest share price, as the company’s takeover of Pretium is expected to give it access to increased gold production, higher cash flows and a long-life mine with a low cost of production.
However, China’s renewed COVID infection rate spike caused the government to lock down certain regions. These concerns weighed on commodity stocks in Australia, which is China’s most important import partner. As a result, the Newcrest share price is set to experience a decline this week. It is down 3.28% as of writing.
Newcrest Share Price Outlook
The intraday decline came from rejection at the 26.26 resistance line (12 November 2021 high). This opens the door for the attainment of 25.18, the immediate support level. Only when this support is degraded can the bears have room for a move to the south, targeting 24.01 before 23.22 comes into the mix. The 28 September/16 December 2021 lows at 22.25 form the other target to the south, which is presently beyond reach.
On the flip side, the bulls need a break of the 26.26 resistance to create a clear pathway towards 27.05. Above this level, 2834 and 29.25 (18 May 2021 high) are the additional price targets available for the bulls if the advance move stays on course.
Newcrest: Daily Chart
Follow Eno on Twitter.