Gold Mining Stock Poised for a Short-Term Bounce
Key takeaways
- NEM GC=F Newmont Corporation (NYSE:NEM ) stock was last seen up 2.4% to trade at $95.01, poised to snap its four day losing streak.
- This trendline has yielded bullish returns in the past.
- The stock also sports a lofty Schaeffer s Volatility Scorecard (SVS) of 80 out of 100, suggesting the equity has consistently realized higher-than-expected volatility as of late.
NEM GC=F Newmont Corporation (NYSE:NEM ) stock was last seen up 2.4% to trade at $95.01, poised to snap its four day losing streak. The 260-day moving average rushed in as support, keeping losses in check.
This trendline has yielded bullish returns in the past. According to Schaeffer s Senior Quantitative Analyst Rocky White, NEM is trading within 0.75 times the 260-day moving average s 20-day average true range (ATR), after spending at least 80% of the previous two weeks and 80% of the prior 42 trading sessions above that trendline. This setup has appeared 11 times during the last decade, after which the stock was higher one month later 55% of the time, averaging a 6% gain. A comparable rally from current levels would place Newmont stock at $100.71.
The stock also sports a lofty Schaeffer s Volatility Scorecard (SVS) of 80 out of 100, suggesting the equity has consistently realized higher-than-expected volatility as of late.