With the price of gold rallying in the last two days, gold producers have started to attract renewed attention. New Gold (NGD.TO) has returned to the Green Favored Zone of the SIA S&P/TSX Composite Index Report for the first time since January of 2021. On Friday it finished in 38th place, up 26 spots on the day and up 83 positions in the last month.
New Gold (NGD.TO) shares staged a major breakout on Friday over $2.25, a move that snapped a long-term downtrend line and completed a bullish Ascending Triangle pattern, combining to signal that base building is over and a new uptrend has commenced. All of this happening on a spike in volume confirms renewed investor interest.
A measured move from the triangle suggests potential resistance near $2.85, about halfway between the June 2021 high near $2.65 and the January 2021 peak near $3.05. Initial support appears near the $2.25 breakout point.
Since a successful retest of support near $1.30 back in October, New Gold (NGD.TO) has been under renewed accumulation. The shares had been consolidating in a higher range since November. On Friday, they broke out once again, completing a bullish Spread Triple Top patten and signaling the start of a new uptrend.
Potential upside resistance tests appear near $2.70 and $3.05 based on previous column highs and $2.82 based on a horizontal count. Initial support appears near $2.18 based on a 3-box reversal.
With a perfect SMAX score of 10, ngd.TO is exhibiting strength across the asset classes.
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