Newmont slightly exceeded a key support yesterday — a Hidden Pivot midpoint at 55.88 — but only by seven cents, so we’ll assume that it is still intact. If the stock should close below the pivot, however, or trade more than 10 cents below it intraday, that would indicate a likelihood of further slippage to as low as 51.54, our midpoint’s ‘D’ sibling.
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Newmont Mining
Newmont’s health appears somewhat more precarious than that of gold futures, since the stock is working on a bearish impulse leg of daily-chart degree created on July 28 with a low of 54.30. We’ll use a midpoint support at 55.34 as a minimum correction target from here, but if the stock closes below it for two consecutive days it would be warning of more downside to as low as 52.68.
Newmont suffered damage equal to that of gold futures as a result of last Thursday’s downdraft, and the stock will now need to hold above 57.59, a midpoint support, if it is to avoid diving down its ‘d’ sibling at 55.42. Alternatively, a print at 60.75 over the next day or two is where the very lesser charts would begin to look bullish once again.
Someone in the chat room remarked that Newmont was tracing out a “triple-top tower of doom,” so I thought I’d have a look myself. He’s right about one thing: the stock has been consolidating for long enough to raise doubts. The potentially good new is that Newmont wouldn’t need a huge rally to be back on top of the world. Specifically, a mere thrust to 50.86– seven percent above yesterday’s settlement price — would refresh the bullish impulse on the daily chart, exceeding a peak along the “wall” of 2008’s summer collapse.
