NEM closes higher for the 4th day in a row
Newmont Mining Corporation (NEM) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, NEM ended Thursday at 48.28 gaining $0.74 (1.56%) on low volume, strongly underperforming the S&P 500 (6.24%). Trading up to $1.27 lower after the open, Newmont Mining managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NEM as at Mar 26, 2020):
Thursday's trading range has been $3.37 (6.99%), that's slightly below the last trading month's daily average range of $4.52. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for NEM.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Doji showed up on March 19th, NEM lost -2.83% on the following trading day.
Prices are trading close to the key technical support level at 46.87 (S1). Prices are trading close to the key technical resistance level at 51.34 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 52.50, upside momentum might accelerate should the stock be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Newmont Mining. Out of 133 times, NEM closed higher 57.14% 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 10 trading days, showing a win rate of 55.64% with an average market move of 0.94%.