CommoditiesTrader

Potential Double Bottom Breakout (Long only on breakout close)

Long
NYSE:NEM   Newmont Corporation
Newmont Mining (NEM) is consolidation within a sideways channel after making a clustered double bottom . Volume has dropped off as the trading session nears its end, but price action remains rather positive.

The 4H chart shows that price has been able to breach resistance at $20.28, which is just more supporting evidence that a breakout close is needed to confirm the breakout and not get sucked into a false break.

A close above the channel will help price trend to $20.77, on it's way to challenge the 200-4H EMA .

Additional topside projections are at $21.46 and $22.01, while downside support on a channel reject are at $19.60 and $18.75 before testing the bottom of the channel.

As always, confirmation is key. Failure to do so automatically scraps trade idea until a new set-up presents itself. The GDX has similar price formation and is trading off of resistance. The mining sector ETF could provide a leading indicator, but it's not indicative of single stock performance.

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