Newmont Mining has experienced heavy liquidation for the past 20 months since peaking at $72.00 in October 2011. This month we saw the shares trade down to a low of $26.47 for a decline of 63%.
However in the past few days we saw some interesting price action that caught our attention! The shares actually saw some strength and traded above the high set at the beginning of the month. It may still be too early to tell but we could be witnessing a reversal of the downtrend that began last fall if the shares can close above the July 23rd high of $31.41 which would also break out of an intermediate downtrend that began last fall.
When looking at a 20-year chart we see something very interesting! The July low found support at a 13-year trendline going back to the year 2000. At the same time there’s been a pick up in volume as sellers have finally thrown in the towel in disgust and are bailing out after a long period of suffering.
We see a great buying opportunity unfolding in one of the world’s largest gold producers!
The information contained in this report was obtained from sources believed to be reliable, however, we cannot represent that it is accurate or complete. This report is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. The views expressed are those of the author and not necessarily those of Raymond James Ltd.
