Sunday, July 19, 2015

NEM Newmont Mining Daily Chart Lower Band Violation

NEM is crushed last week on the stronger dollar. Gold and gold miners are beaten as the dollar rises. NEM earnings are on tap on Wednesday afternoon so there may be some fireworks ahead. The red rising wedge, overbot conditions and negative divergence create the smack down off the top in May. The green lines show some positive divergence developing, and indicators are oversold, however, the RSI and MACD line remain weak and bleak wanting lower lows after any price bounce occurs.

The lower band is violated so a move back to the middle band at 23 and dropping is in play. The chart says a bounce should occur but then price should leak lower again to satisfy the RSI and MACD line. Thus, NEM is not attractive as a short and would be more attractive as a long but only after a couple weeks or so to allow the indicators to develop possie d. Of course the earning release can create a dramatic move later in the week either a euphoric catapult higher on better than expected results, or an utter collapse if the news is bad. It is best to be patient and wait for that drama to play out. NEM may not set up as an attractive long until into August. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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