NEM closes lower for the 3rd day in a row
Newmont Mining Corporation (NEM) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, NEM finished the week -7.14% lower at 63.05 after edging lower $0.43 (-0.68%) today on low volume, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NEM as at May 22, 2020):
Friday's trading range has been $2.20 (3.42%), that's below the last trading month's daily average range of $2.52. 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 lower than usual for NEM.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move above 65.04 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 64.98. The last time this happened on Tuesday, NEM lost -2.46% on the following trading day.
Although the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the close-by swing low at 62.30 where further sell stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Newmont Mining. Out of 551 times, NEM closed higher 54.63% 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 two trading days, showing a win rate of 54.26% with an average market move of 0.22%.