NEM daily March 7th
NEM (Newmont Mining Corp.) is currently backtesting the primary downtrend line. NEM was added to the Live Charts page along with numerous other mining stocks as a trade idea on Dec 31st while at the bottom of this large bullish rising wedge pattern. From there, the stock went on to hit the first target (downtrend line/top of the wedge pattern) on Feb 20th for a gain of just over 12%. The stock then pulled back and made one last kiss of the bottom of the wedge before thrusting back up to the top of the pattern once more. NEM struggled with the downtrend line for a couple of weeks before finally breaking above the pattern on Wednesday and is now backtesting the downtrend line from above.
Longer-term I remain bullish on NEM and the mining sector but near-term I would still prefer to see a little more consolidation or pullback before aggressively adding back exposure to the sector. NEM could very well move higher from here following this initial backtest of the pattern or, if my recently posted 60 minute scenario on GDX continues to play out, NEM could continue to backtest the pattern while drifting lower in the coming days.