A few years ago, NewGold ETF was listed on the NGSE by Vetiva Securities with the technical co-operation of ABSA (Barclay Africa).
Update (dd. 4/3/2018)
With Naira stability in the last 12 months @ N360 per USD, the main trend depending factor for NewGold ETF’s price movement remains the XAUUSD (International Gold Futures Market). Find attached our current trend forecast on XAUUSD using the Trader’s Navigator Algo: Spot Gold RNVI Chart-wk-9-2018
An Elliot wave analysis on the Gold’s Trader’s Navigator trendline indicates that we are reaching the upper limit of a long-term bullish trend channel thus next we should expect a long-term bearish downward trend if there is no breakout over the upper limit. The expected bearish trend may occur once Gold’s price completes it’s current ascending triangle as shown below:
Based on these XAUUSD expectations, price of NewGold ETF should be entering a bearish trend too as indicated in the below NewGold price chart. Our target support range is between N3,195 – N4,295
Summary: We have a “SELL” recommendation on NewGold ETF. Nigerian investors should consider to take their long-term profits now…
Update (dd. 20/5/2018)
Find link to our updated trend forecast on XAUUSD (Spot Gold) using the Trader’s Navigator Algo: Spot Gold RNVI Chart-wk-18-2018
An Elliot wave analysis on the Gold’s Trader’s Navigator Trendline (TNTL) indicates that having reached the mid-line of the long-term bullish trend channel, it has started the expected bearish downward trend. The bearish trend is also visible on Spot Gold’s price chart as shown below:
Based on these XAUUSD expectations, the current bearish downtrend in the price of NewGold ETF confirms our 4/3/2018 forecast. Notwithstanding, we can expect a short-term bullish rebound towards our target resistance level @ N4,752
Summary: We maintain our early “SELL” recommendation on NewGold ETF. It will be wrong to choose Gold as a defensive security during this ”disinflation” period in the Nigerian financial environment.