NEM runs into sellers around 44.34 for the third day in a row
Newmont Mining Corporation (NEM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NEM ended the week 0.11% higher at 44.07 after gaining $0.06 (0.14%) today, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NEM as at Feb 14, 2020):
Friday's trading range has been $0.54 (1.23%), that's below the last trading month's daily average range of $0.73. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NEM. Prices continued to consolidate within a tight trading range between 43.62 and 44.67 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 43.93 (S1). The stock ran into sellers again today around 44.34 for the third trading day in a row after having found sellers at 44.38 in the prior session and at 44.36 two days ago. The last time this happened on Tuesday, NEM lost -0.75% on the following trading day.
Although the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 44.38 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 43.62 where further sell stops could get triggered. As prices are trading close to February's low at 43.53, downside momentum might accelerate should Newmont Mining mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Newmont Mining. Out of 782 times, NEM closed higher 53.71% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after five trading days, showing a win rate of 52.94% with an average market move of 0.15%.