Newmont Mining Technicals (And A Ramble) - Gary Tanashian

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Gary Tanashian is proprietor of Biiwii.com. Actionable, hype-free technical, macro economic and sentiment analysis is provided in the premium newsletter Notes From the Rabbit Hole (http://www.biiwii.com/NFTRH/subscribe.htm). Complimentary analysis and commentary is available at the 'Biiwii Blog'... More

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Newmont Mining Technicals (And A Ramble) 0 comments

May 10, 2012 7:26 AM | about stocks: NEM, GLD, SLV, GDX

I do not currently own it, but as a gold sector senior producer, I thought it would be a good one to highlight. Let's see what NEM is showing this morning...
A topping pattern broke down in March after a smaller supposed bullish pattern I had been imagining failed at around the same time HUI failed its short term uptrend, resulting in a bear flag breakdown that put us on alert to the nastiness that has followed. The target became 42-ish.
NEM has since been marching lower toward target, but was interrupted yesterday by a large bullish engulfing candle, on volume, after sporting bullish divergence for the last month+. Coming amid bullish divergence and a steady downtrend, this is a setup for reversal. Not a prediction for one, but typically a perfect environment for one per traditional TA.
Value is going on sale in this sector, and I am not just spouting that with the surety of a perma gold bug. I am backing it up with a lot of work being presented consistently and in a hype free fashion in the newsletter and email updates. There must be real work backing up a contrarian viewpoint or else it is just dart throwing.
NFTRH

is managing the gold stock technical situation and yesterday was nice as we had some notable short term technical positives across the sector, like what NEM is flashing here. With moderation, we move forward and keep our heads screwed on straight. This is the time to strong (cash makes you strong) and patient, plucking up value on YOUR terms, not hanging on for dear life in fear and angst.
Will NEM achieve 42? I don't know, it's just a measurement. I'll probably hang out, watch and wait a bit since the x-div date has passed. But NEM owns NFTRH's former #1 holding, the former standout explorer Fronteer Gold and its Long Canyon property in Nevada. I'd like to make a reacquaintance with them sometime.
Meanwhile, the favored area for me is the young producers with management that says what it is going to do and does what it says (as opposed to the other kind of management that is so prevalent). The macro could be shaping up in such a way that could one day be wildly positive for this sector at a time when quality gold stocks have been thrown out with all the dirty bath water, in yet another hoary purging of the trend followers.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Themes: gold, gold stocks Stocks: NEM, GLD, SLV, GDX

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