This morning, the leading gold mining stocks are selling off with the precious metals. The popular Vaneck Vectors Gold Trust ETF (GDX) is falling by 2.98% indicating weakness in the entire gold mining sector. One particular golf mining stock that I follow closely is Newmont Corp (NEM). This gold mining stock has the strongest relative strength in the industry group. Today, Newmont Corp (NEM) stock is trading lower by 2.65% to $57.36 a share. The stock has been making a series of lower highs on the daily chart indicating a daily downtrend. It is also trading below it’s important 50 and 200-day moving averages. This puts the stock in a weak technical position and usually signals more selling is in the cards near term.
Newmont Corp (NEM) should have very good chart support around the $53.00 area. This is where the stock broke out to the upside in June 2020. Often, prior breakout pivots will serve as excellent support when retested. There is also a key retrace level level around this area that should also add to the supporting factors for a bounce. Please note, Newmont Corp (NEM) is scheduled to report earnings on February 18th, 2021.
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