Newmont Mining (NEM) has been subtly building a trend of higher highs and higher lows. It is set up for a move now. The Full Stochastic indicator looks like it is bottoming at 50 % which usually happens when strong stocks pull back. With the price in such a narrow range the decision is coming soon. The recent breakout to 52 week highs and then a failure to hold the breakout was concerning. But it could not go on to make a lower low. This suggests to me the upcoming move is to the upside. My stop would be close at $36.85.
There is something setting up across the metals space and I'll have more information on this weeks Commodities Countdown. It seems to be more specific towards precious metals rather than industrial metals so we'll cover that off as well.
Good trading,
Greg Schnell, CMT, MFTA
