NEM closes within previous day's range after lackluster session
Newmont Mining Corporation (NEM) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
NEM ended Wednesday at 67.29 edging lower $0.26 (-0.38%), but still slightly outperforming the S&P 500 (-0.46%). Trading $0.60 higher after the open, Newmont Mining was unable to hold its gains as the bears took control ending the day below its opening price. 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 Sep 16, 2020):
Wednesday's trading range has been $1.22 (1.8%), that's far below the last trading month's daily average range of $2.10. 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 65.81 and 68.85 where it has been caught now for the whole last trading week.
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.
Prices are trading close to the key technical support level at 67.08 (S1). After having been unable to move lower than 67.05 in the previous session, the market found buyers again around the same price level today at 67.22. The last time this happened on September 10th, NEM actually lost -0.41% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 68.57 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 65.81 where further sell stops might get triggered.
Among the seven 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 758 times, NEM closed higher 54.09% 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 six trading days, showing a win rate of 53.30% with an average market move of 0.26%.