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.

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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