Newmont’s explosive burst yesterday was the most promising impulse leg we’ve seen in a while — a nearly 12% price gain in mere hours. Buyers pulled back on the close, presumably to keep the stock from running away before they load up. The midpoint pivot at 30.79 (red line) will pose a key test, but if it’s touched, a fresh impulse leg would become manifest on the hourly chart (see inset). Notice that that would put the stock just above the look-to-the-left peak at 30.77 recorded June 20 on the way down. A b-c pullback from just above it could set up a nice buying opportunity. However, because it could be perceived by others as a breakout, buyers could rush in quickly. To leverage this set-up, assuming it occurs as I’ve described it, I’d suggest zooming down to the 1-min chart and buy-stopping your way aboard at the ‘x’ entry point of the small pattern.
