NFTRH+; A Gold Miner in a Technical Setup

A low priority update for those who would venture into speculation on a troubled miner.

NGD broke above the channel top only to drop back into it. Now it is testing the 200 day moving average. This is obviously not an up-trending situation and so all due caution is warranted. Being a bottom feeder is a tough business.

I took a small position and will not be lenient on this below .95 or so.

Daily RSI and MACD are green but STO has not yet gotten above 80, which would be another positive signal.

ngd

The weekly chart is not bad from a bottom feeder’s perspective. It made a low in 2019 on a positive RSI divergence. It then shot upward with volume and has been consolidating that move. With the recent move above the daily SMA 200 above it is a candidate to keep on going. Weekly RSI is 50+ and MACD is somewhat constructive as it’s negative but crossing upward.

Of course, the company has to cooperate by cutting down on the screw ups and improving execution. As I understand it, Rainy River is a good property and the question is whether New Gold can figure out how to operate it and its other mines in an efficient way. Always a valid question with gold miners!

ngd

A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.