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.
Before discussing potential trading opportunities, please take a look at the 1-year chart of NEM (Newmont Mining Corporation) below with my added notations:
Over the last (9) months NEM has commonly found support at the $43 level (red). The stock has also been trending lower since September even though the overall market has moved to new highs during that period of time. This down trend would seem to imply that NEM is gearing up for a break of support, which the stock appears to have done yesterday.
The Tale of the Tape: NEM may be breaking its level of support at $43 and the stock could be moving lower. A short position could be entered on a more convincing break of $43 with a stop placed above that level. If the stock holds $43 a long trade could be made with a stop below the level of entry.

Please bookmark us