Newmont Mining Corp. declined from $72.42 (U.S.) to $20.78 (A-B), and then settled in a trading range between $18.00 and $27.50 and then a slightly lower range between $15.50 and $20.50 (dashed lines). This price action produced a bullish technical pattern called a Delayed Ending. The move above the top of the second range (C), followed by the rise above the top of the first range (D) signalled a major breakout and the start of a new up-trend (solid line). At the same time, Newmont is extremely overbought and could have a correction toward $28 to $29 for a better entry level, but only a decline below $25 to $26 would be negative.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. and he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com.