Newmont Mining Corp. (NYSE: NEM)

Newmont Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. The company's assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, New Zealand, and Mexico. As of December 31, 2011, it had proven and probable gold reserves of approximately 98.8 million ounces and an aggregate land position of approximately 31,500 square miles. The company was founded in 1916 and is headquartered in Greenwood Village, Colorado.

Please take a look at the 1-year chart of NEM (Newmont Mining Corporation) below with my added notations:




NEM sold off from November of last year until May of this year. After hitting that low, the stock formed what a double bottom (blue) price pattern. The pattern is as simple as it sounds: Bottoming, rallying up to a point, selling back off to a similar bottom, and then rallying back up again.

As with any price pattern, a confirmation of the pattern is needed. NEM confirmed the pattern by breaking up through the $52.50 resistance (red), which had also been a brief support in March. The expectation would be for the previous $52.50 resistance to now act as support on any pullbacks before the stock moves higher.