Wednesday, June 15, 2005 4:08:41 PM
Chart Talk: Newmont Mining Corp (NEM)
Bullwinkle- Thanks for the word of wisdom. Initially those hate mails did upset me, but I’m used to them now. I know you had sold your gold shares. I probably should’ve said that you didn’t load up on gold shares anymore. Speaking of which, Newmont’s looking quite palatable to me.
The most significant aspect of this chart is the volume. I believe the recent drop to below $35 should’ve been the bottom. The volume was only half of the previous gap down. That tells me the selling pressure was no where near as intense as the gap down in late April. The recent advances were on higher volumes above the 21-day moving average.
I also liked the fact that the RSI’s trending higher and had already crossed above 50. MACD looks promising as well. MACD (the thick black line) is the differential between the 12-day EMA (Exponential Moving Average) and the 26-day EMA, which had crossed above the 9-day EMA trigger line (red line) and had just barely crossed over to the positive territory (at 0.046). And, the histogram, which is the difference between the MACD and the 9-day EMA trigger line is in the positive territory (at 0.280).
Consideration could be given to initiate long position on the first buy signal if the above technical signs stay intact while price moved convincingly above $39 with above average volume and continued uptick of BB Width.
Additional shares may be purchased if the price moves above $40, which would then fill the gap and turn this gap into its new support. This should solidify its $40 price level. Before buying more shares at this price level, make sure that BB Width continues to rise and all other above referenced technical aspects stay intact.
DISCLOSURE: I currently don’t own NEM shares. I sold all my shares at the price just a tad over $44 in March, prior to the beginning of this downtrend.
Bullwinkle- Thanks for the word of wisdom. Initially those hate mails did upset me, but I’m used to them now. I know you had sold your gold shares. I probably should’ve said that you didn’t load up on gold shares anymore. Speaking of which, Newmont’s looking quite palatable to me.
The most significant aspect of this chart is the volume. I believe the recent drop to below $35 should’ve been the bottom. The volume was only half of the previous gap down. That tells me the selling pressure was no where near as intense as the gap down in late April. The recent advances were on higher volumes above the 21-day moving average.
I also liked the fact that the RSI’s trending higher and had already crossed above 50. MACD looks promising as well. MACD (the thick black line) is the differential between the 12-day EMA (Exponential Moving Average) and the 26-day EMA, which had crossed above the 9-day EMA trigger line (red line) and had just barely crossed over to the positive territory (at 0.046). And, the histogram, which is the difference between the MACD and the 9-day EMA trigger line is in the positive territory (at 0.280).
Consideration could be given to initiate long position on the first buy signal if the above technical signs stay intact while price moved convincingly above $39 with above average volume and continued uptick of BB Width.
Additional shares may be purchased if the price moves above $40, which would then fill the gap and turn this gap into its new support. This should solidify its $40 price level. Before buying more shares at this price level, make sure that BB Width continues to rise and all other above referenced technical aspects stay intact.
DISCLOSURE: I currently don’t own NEM shares. I sold all my shares at the price just a tad over $44 in March, prior to the beginning of this downtrend.
David
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