The annual chart of the world’s largest American gold producer Newmont (WKN 853823) has shown an unbroken upward trend above the blue trend line since the beginning of the year, during which the share price has more than doubled. After the October high, the price corrected quickly and fell back to the blue trend line. The round mark of 80 US dollars also seems to have a stabilizing effect.
Further indications of the decreasing downward dynamic are given by the average lines and the indicators.
The 100 and 200 day lines continue to rise steadily – this is just as positive as the fact that the 100 line continues to run clearly above the 200 line.
The MACD is trading with both lines near the annual low and is about to generate a buy signal (when the blue line crosses the red line upwards). The stochastic indicator already achieved such a signal in the last days of October. The trend confirmer recently fell below the neutral 100 into negative territory after a long time, but is currently already beginning to turn upwards again.
The overbought/oversold indicator also fell below zero and thus to a value like before the start of the upward trend, which has now also turned upwards again, but is still trading in an area that is at the lower end of the longer-term fluctuation zone. The Chaikin Money Flow is remarkable – it documents (through the exclusive course in the green zone) an absolutely unbroken inflow of capital into the share since March, even during the days of consolidation.
Source: Comdirect
