Why NEM May Be On Its Way To $18
Newmont Mining has spent the last three weeks
hugging a critical trend line. This trendline originates back in October 2000.
In fact, based on what I see in the weekly chart, if this trend line is broken,
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PowerRating) could be headed for the $17 to $18 range. Before I get ahead of myself
let’s review price action from the October 2000 lows.
Five times we have touched this weekly
chart trend line.
First time — initiated a 75% rally
Second time — initiated a 76% rally
Third time — initiated a 44% rally
Fourth time — initiated a 35% rally
(The rallies are getting smaller!)
We are now sitting on this trend line for the fifth time. This one is concerning
me. Each of the last four times this critical trend has been hit, it only took
one and at max two weeks to light the rocket boosters. We are now on the THIRD
week of hugging the line and I don’t hear any rockets?!
Now, to position this in the context of my Fibonacci work I have a support zone
from 22.89 to 24.54. Then we have a sizeable Air Pocket, then another focus
price support zone from 17.00 to 18.65. Based on what I’m seeing, it would not
surprise me if this trend line is broken and this first Fibonacci support zone
is violated. In this case, NEM would be on a downtrending path (maybe not
direct) to the $18 range.
Finally, I had mentioned in a
previous column that
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PowerRating) was setting up for a Triple Crown short. Friday,
we were triggered short. Here is the chart below.
Good night!