Newmont Mining Corp (NYSE: NEM)

Newmont Mining Corporation, together with its subsidiaries, acquires, explores for, and produces gold, copper, and silver deposits. The company’s assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, New Zealand, Mexico, and Suriname. As of December 31, 2013, it had proven and probable gold reserves of approximately 88.4 million ounces and an aggregate land position of approximately 24,000 square miles. The company was founded in 1916 and is headquartered in Greenwood Village, Colorado.
Take a look at the 1-year chart of Newmont (NYSE: NEM) below with added notations:

After a steep decline in September and October, NEM has been trading sideways since its November low. All the while, the stock has formed a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern.
NEM’s rectangle pattern had formed a $20 resistance (green) and an $18 support (blue). At some point the stock had to break one of the two levels, and earlier this week NEM broke the $20 resistance.

The Tale of the Tape: NEM broke out of its rectangle pattern. The possible long position on the stock would be on a pullback to $20. The ideal short opportunity would be on a break below $20 with an expectation of a fall down to the $18 level.
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