Ratcheting Its Way Down
Newmont (NEM) price action’s working its way lower to a ‘free-fall’ area; shown below.
Depending on behavior if or when it gets to this area, there could be an acceptable set-up to execute an ‘Elder-type’ Put option (not advice, not a recommendation).
That Put strategy has already been discussed but for those who may be new, it’s basically a short-expiration, out-of-the-money Put for maximum (potential) gain.
A completely counter-intuitive approach to the standard method of long-dated entries, then ‘wait’ while the value burns down to nothing.
Newmont Mining NEM, Daily
The compressed chart has the big picture; Newmont’s all-time highs were reversed on April 18th, 2022.
It’s currently in the process of finding its long-term bottom which is possibly far away from current levels.
The next chart gets close in on the potential set-up.
If price action follows its current down-trend, NEM may reach the potential free-fall area late next week.
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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