NEM Daily Chart H&S Testing Neckline Lower Highs Lower Lows

NEM daily chart head and shoulders pattern is currently testing the neckline. Any move lower constitutes a break down of the neckline and an H&S target of 45 will be in the cards.  Look at the huge volume selling last Thursday as many traders threw NEM overboard. This chart is of interest since NEM serves as a proxy for gold overall. The H&S neckline at 54.5 held a month ago but NEM bulls will probably not be so lucky this time around. The dots show the pattern of lower highs and lower lows, and a failure of the neckline will usher in another lower low.

ADX shows a strong trend in place for the late January selling and now the ADX is curling upwards again as the selling renews. This chart is sick with price under the 20 MA under the 50 MA under the 200 MA. The fight to regain the 200 MA over the last few days has failed miserably. The best NEM bulls can hope for is a bounce here at the neckline and a move sideways into the 54 to 59 channel range moving forward, but, any bounce is most likely a selling opportunity. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.