Newmont Corp. (Friday’s close US$44.02) had a sharp rise from US$$16.05 in January, 2016, to US$$46.07 in August of the same year (A-B). The stock pulled back toward ±US$30 by the end of the year (C) and then stayed in a large horizontal trading range mostly between US$30 and US$42 during the past three years (dotted lines). The stock pierced above the top of this range recently to signal a breakout and the start of a new up-leg (D).
Newmont is somewhat overbought and may have a minor correction for a better entry level. There is good support at ±US$42, but only a decline below US$38-US$39 would be negative.
Point & Figure measurements provide targets of US$49 and US$53. The large trading range (dotted lines) supports higher targets.
stock
Chart figures are in U.S. dollars.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
Note to readers: This story was originally published with an incorrect Friday close, and without the US$ notation throughout. The figures are now correct.