The world’s largest American gold producer, Newmont Mining, reached a high point of almost 60 US dollars in October. By the turn of the year, the stock price lost about a third of its value in a significant downward movement. Since the beginning of the current year, it has been steadily rising again, well above the green uptrend line. Around the last high, the price oscillated textbook-style around that value and then continued to rise – a slightly steeper trend line can be derived since May.
Both moving averages are fortunately rising clearly – moreover, the 100-day moving average generated a medium-term buy signal by crossing above the 200-day moving average.
The Stochastic indicator, with its highly oscillating signals, is congenially aligned with the stock price, which is steadily rising with many small ups and downs. Currently, the Stochastic still shows a sell signal, but it is almost immediately before the next buy signal (blue line crosses above red line). The trend confirmation indicator has been consistently above the neutral 100 in positive territory since the beginning of the year (with only two minimal outliers).
The Chaikin Money Flow shows an impressively positive trend, running almost exclusively in the green zone since mid-January, indicating a capital inflow into the stock. The Overbought/Oversold indicator only reached near an overbought signal (values from 2.0) at two points in the last twelve months (and only sporadically) – currently, it is at 0.5, placing it in the middle of its historical range (and just barely above the neutral zero).
Looking at the five-year chart, an inverse Head and Shoulders (H) formation can be identified, whose neckline was broken upwards with the current upmove – the chart-technical price target is approximately 120 US dollars (the extension of the formation downwards then projected upwards).
