Impressive Gains Could Be Ahead for Gold Miner
A closer look at the world's largest gold mining corporation suggests an opportunity that investors can seize.
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I get emails from subscribers about stocks I have covered and about stocks they are interested in. One subscriber gave me kudos for some of my precious metal recommendations of the past year and asked about Newmont NEM and whether it was still OK to buy.
I covered NEM on April 26, 2024, but the subscriber missed it. In any case, let's take an updated look at the charts of NEM.
In this daily bar chart of NEM below, I can see that prices have sprinted higher since late February. NEM trades above the rising 50-day moving average line and above the rising 200-day line. A breakout from a base pattern happened in July when prices powered above $44. The On-Balance-Volume (OBV) line has trended higher since late February and helps to confirm the price gains. The trend-following Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of NEM, below, I see a positive setup. Prices just made a new high for the move up and made a breakout. NEM trades above the rising 40-week moving average line. The weekly OBV line turned higher from last August and is close to a new high for the move up. The MACD oscillator is above the zero line and in bullish territory.
In this daily Point and Figure chart of NEM below, I can see an upside price target in the $58 area.
In this second Point and Figure chart of NEM below, I used weekly price data with a five-box reversal filter. Here, the software is coming up with a potential price target in the $120 area.
Bottom line strategy: Traders and investors could go long NEM or add to longs in the $46 area if available. Risk to $43. The $58 area is my price target for the next several months but the Point and Figure charts suggest even more impressive gains are possible in the next year or two.
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