Newmont: Wedge Breakout

The entire precious metals sector may be about to take an unexpected hit.

Prior updates have discussed the Newmont (NEM) bearish divergence and reversal.  This update shows a rising wedge breakout to the downside.

Using standard analysis techniques on the chart below, we get a measured move to the vicinity of 47 for NEM.

A decline of that magnitude, a drop of over 22%, may be the catalyst for a whole other bearish scenario.

Just based on empirical observation and analysis generally available (YouTube, et al), it’s pretty safe to say that no-one is prepared for a significant decline.

Well, almost no-one.  As reported back in late September, the only YouTube analyst (that was located) proposing the idea of a decline was Sajad, in this report.

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.
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