Both the share price of Newcrest Mining and Spot Gold rallied sharply last week.
As such, both are now trading against the key technical resistance at the 30-day moving average areas of $22.00 and $1230.00, respectfully.
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Looking ahead, the question is whether the inverse correlation between global equity prices and Gold continues, and whether that will continue to lift the shares of Newcrest?
On Friday, the daily trading volume in Newcrest was 12.7 million shares.
This is more than twice the average daily turnover of 5.5 million and the largest volume day since 18.5 million shares were traded on June 24th, 2016.
Generally, an up-day in the share price, on expanding volume, is a positive sign for further gains in the share price.
At this point, we don’t have a buy signal from the ALGO engine but will watch the price action closely.
