New Gold (NGD) stock is likely to face challenges in the near term based on several indicators suggesting a bearish trend:
- Earnings Projection: NGD is expected to report an EPS of -$0.02 for the upcoming quarter, indicating a significant decline from the previous year's same quarter. This reflects potential operational challenges or non-recurring expenses that could negatively impact investor sentiment1.
- Support and Resistance Levels: The stock is currently positioned between narrow resistance and wide resistance levels, suggesting that while there is some support, the overall trend is leaning towards the downside. The forecast advises selling, with a historical win rate of 56.59% for this type of forecast.
- Trend Forecast: The bullish trend in NGD stock has been ongoing for 20 days, but with a continuation probability of only 58%. Additionally, the trend is expected to shift to bearish, with a sell advice and a historical win rate of 61.22% for this type of forecast.
- Price Forecast: The price forecast for NGD stock shows a mean forecast price of $3.55, with a narrow 34% confidence interval ranging from $3.46 to $3.59. This indicates limited upside potential from the current price level.
- Market Sentiment: Recent news about NGD has been mixed, with a decline of 1.48% noted, which lags the market's performance2. However, Bank of America's upgrade and price target increase suggest potential growth, especially with strong production forecasts and declining costs34.
In conclusion, while there is some potential for growth as suggested by Bank of America's upgrade, the overall indicators and forecasts point more towards a bearish outlook for NGD stock in the near term. Investors should exercise caution and consider these factors before making investment decisions.