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The form exhibited by the decline in Newmont Mining (NYSE: NEM) from its September 22 high at 65.50 into Monday's low at 57.31 has the right look of a completed correction into the area of the sharply rising 200-day moving average (57.18) amidst a glaring positive momentum (RSI) divergence.
This technical combination represents critical support that so far has provided a launch pad from where the price structure can pivot strongly to the upside. As long as last week's low remains intact at 57.31, this should be the start of a new upleg within an intermediate-term bull trend.
Next upside targets: 59.50/60, and then 60.50-61.00.
Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!
