Newmont Mining (NEM) Support Area in Pullback
Introduction
In our previous article on March 20, 2022 about Newmont Mining (NEM), we mentioned the stock can soon end 5 waves up from 2015 low and see a larger pullback. Fast forward 3 months later, the stock has started the pullback and is still in the middle of it. In this update, we will look at the support area in the pullback for Newmont Mining (NEM).
Technical Analysis
Looking at the chart of Newmont Mining (NEM), we can see that the stock has retraced back to a key support area around $55. This level has historically acted as a strong support and resistance zone for the stock, and it is likely that we will see some buyers step in here to defend this level.
Additionally, the 50-day moving average is also converging around this support area, adding further confluence to the potential for a bounce higher from here. Traders and investors should keep a close eye on how the stock reacts at this level in the coming days.
Implications
If Newmont Mining (NEM) is able to find support at the $55 level and bounce higher, we could see a resumption of the uptrend that started in 2015. On the other hand, if the stock breaks below this support area, it could signal a deeper pullback towards the next support levels around $50.
Impact on Me
As an investor in Newmont Mining (NEM), the support area in the current pullback is crucial for me to monitor. A successful bounce from this level could provide a buying opportunity for me to add to my position, while a breakdown below this support area may prompt me to re-evaluate my investment thesis.
Impact on the World
Newmont Mining (NEM) is a major player in the gold mining industry, and any significant movements in its stock price can have ripple effects on the broader market. A successful bounce from the support area could boost sentiment in the mining sector, while a breakdown below support could lead to increased volatility in the industry.
Conclusion
In conclusion, the support area in the current pullback for Newmont Mining (NEM) is a critical level to watch for traders and investors. The stock’s reaction at this key support zone could provide valuable insights into the future direction of the stock. Stay tuned for further updates as the situation develops.
