ChartWatchers

NEWMONT (NEM) FORMS THE MOTHER OF ALL CONSOLIDATIONS

Chip Anderson

Chip Anderson

President, StockCharts.com

Since NEM first broke above 35, gold has advanced from below 400 to above 500. However, NEM remains stuck in a long-term trading range. Did NEM secretly hedge production? Probably not, but the stock is not keeping up with gold, which broke above its 2003 and 2004 highs.


NEM is current challenging resistance and a close above 51 would be long term bullish. The pattern looks like a sharp advance and (20-50) and long flag (35-50). A break above 51 would signal a continuation of the prior advance and project a move to around 65 (50 - 20 = 30, 35 + 30 = 65). We could also consider the trading range as a large rectangle formation and a breakout would project a move to around 65 (50 - 35 = 15, 50 + 15 = 65). Either way, a new all time closing higher for NEM would be long term bullish for both the stock and gold.


Chip Anderson
About the author: is the founder and president of StockCharts.com. He founded the company after working as a Windows developer and corporate consultant at Microsoft from 1987 to 1997. Since 1999, Chip has guided the growth and development of StockCharts.com into a trusted financial enterprise and highly-valued resource in the industry. In this blog, Chip shares his tips and tricks on how to maximize the tools and resources available at StockCharts.com, and provides updates about new features or additions to the site. Learn More