Newmont Corp (NEM) corrected lower from April to late August losing about 50% of its value, but the picture has improved in recent months as the price of gold has rallied. Let's check the charts.
In this daily bar chart of NEM, below, I can see that prices have moved sideways from August with dips to and below being bought. Prices have rallied above the 50-day moving average line and its slope has turned positive. The slope of the 200-day line is still negative and intersects around $55.
The On-Balance-Volume (OBV) line has been steady/neutral since August even though trading volume has been more active since then. The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in November for an outright buy signal.
In this weekly Japanese candlestick chart of NEM, below, I see some positive clues. A bullish hammer reversal at the end of October stands out.
The weekly OBV line made a low in September. The MACD oscillator crossed to the upside for a cover shorts buy signal in November and is on its way to cross the zero line.
In this daily Point and Figure chart of NEM, below, I see an upside price target in the $53 area.
In this weekly Point and Figure chart of NEM, below, an upside price target of $64 is now being projected.
Bottom line strategy: Traders looking to get some exposure to precious metals could go long NEM at current levels risking to $43. The $64 area is our price target for now.
