NEM rises to highest close since May 22nd
Newmont Mining Corporation (NEM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, NEM ended the month 5.59% higher at 61.74 after surging $2.20 (3.69%) today, strongly outperforming the S&P 500 (1.54%). This is the biggest single-day gain in over a month. Today's close at 61.74 marks the highest recorded closing price since May 22nd. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 59.95, the share confirmed its breakout through the previous session high after trading up to $2.02 above it intraday.
Daily Candlestick Chart (NEM as at Jun 30, 2020):
Tuesday's trading range has been $2.79 (4.68%), that's above the last trading month's daily average range of $2.23. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NEM.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
Newmont Mining managed to close above the 50-day moving average at 60.46 for the first time since June 2nd. Unable to break through the key technical resistance level at 61.83 (R1), the market closed below it after spiking up to 61.97 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on June 2nd, NEM lost -4.19% on the following trading day.
Crossing above the upper Bollinger Band for the first time since May 15th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 57.26 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Newmont Mining. Out of 96 times, NEM closed lower 57.29% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 60.42% with an average market move of -0.88%.