Like numerous bullion vehicles that we track and trade, Newmont has disappointed by failing to surpass on the first try a distinctive external peak to the left on the intraday charts — in this case a mildly challenging external one at 27.47 (see inset). The shortfall would be remedied by a modest 55-cent rally from current levels, but even then we’d be left to infer that buyers are more timid than if they’d easily surmounted the peak. Assuming they are at least game to try again, we should see the corrective abc pattern cut short and reverse from somewhere near the p midpoint. Otherwise, look for a further correction down to ‘d’ that would of course be buy-able with a tight stop (or via camouflage). Please note that the ‘failed’ rally is impulsive nonetheless, albeit less than impressive because it did not surpass 27.47. _______ UPDATE (10:59 a.m. EDT): The p=26.83 midpoint support in fact held when Newmont gapped sharply higher on Monday morning. The stock had gone no lower on Friday than 26.86 after manifesting an a-b correction leg. Now I’d suggest using the 27.89 target shown as a new minimum upside objective for the (very) near-term.
