Newmont: Textbook Test

Is It Too Perfect ?

NEM: Daily Close

‘If on the next retrace, volume contracts ….’

That’s the training given by the late David Wies years ago concerning springs and up-thrusts.

His inference, if the volume contracts on the pull-back, the set-up has been tested; resumption of the reversal (up or down) is now expected to continue in earnest.

More analysis to follow but that’s where Newmont looks to be at this juncture.

Both gold (GLD), Newmont (NEM), and the miners (GDX), are at the danger point.

At this juncture, price action distance to trade failure or continued sucess is quite small (not advice, not a recommendation).

Stay Tuned

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.

The Danger Point®, trade mark: No. 6,505,279

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