Newmont: 2x potential outlier basing @2009 channel+ Cup Neck
Newmont gold miner, after more than doubled from a 2016 Cup & Handle formation, came back down to retest the neckline at around 40. As you can see in the chart, it reached the top of the 2009 channel near 85 on
April 2022 & went vertically down to retest the channel base near 40, with the usual chopping near the mid channel dotted blue line.
Very bullish cases: target levels are 50 (previous strong support), 60 (projected ma200 zone) & 70 (projected channel median line)
It has been basing for 7 weeks holding 40
Basing around the 2009 lower channel
Retested successfully 2016 Cup & Handle neck@40
Slight Rsi divergence
Macd holding above zero
Made higher high & higher low
About to cross daily dma50 to regain channel
WARNING: with GDX & GDXJ gold miners looking very bearish at this point, I MAY BE WRONG! So watch carefully the 40 zone as it is the line in the sand.
Not trading advice
April 2022 & went vertically down to retest the channel base near 40, with the usual chopping near the mid channel dotted blue line.
Very bullish cases: target levels are 50 (previous strong support), 60 (projected ma200 zone) & 70 (projected channel median line)
It has been basing for 7 weeks holding 40
Basing around the 2009 lower channel
Retested successfully 2016 Cup & Handle neck@40
Slight Rsi divergence
Macd holding above zero
Made higher high & higher low
About to cross daily dma50 to regain channel
WARNING: with GDX & GDXJ gold miners looking very bearish at this point, I MAY BE WRONG! So watch carefully the 40 zone as it is the line in the sand.
Not trading advice
Comment:
It is right at the 0.618 Fib retracement, an ideal reversal zone.