NEM rallies, gaining $3.54 (5.39%) within a single day
Newmont Mining Corporation (NEM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
NEM finished the month 12.08% higher at 69.20 after surging $3.54 (5.39%) today, significantly outperforming the S&P 500 (0.77%). This is the biggest single-day gain in over three months. Today's close at 69.20 marks the highest recorded closing price since November 15, 2011. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 67.86, Newmont Mining confirmed its breakout through the previous session high after trading up to $1.36 above it intraday.
Daily Candlestick Chart (NEM as at Jul 31, 2020):
Friday's trading range has been $3.46 (5.19%), that's far above the last trading month's daily average range of $2.05. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NEM.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on July 24th, NEM gained 3.43% on the following trading day.
Buyers managed to take out the key technical resistance level at 67.08 (now S1), which is likely to act as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 70.30 where further buy stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Newmont Mining. Out of 263 times, NEM closed higher 54.75% 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 54.37% with an average market move of 1.07%.