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$53. The large trading range (dotted lines) supports higher targets.
Chart figures are in U.S. dollars.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
Note to readers: This story was originally published with an incorrect Friday close, and without the US$ notation throughout. The figures are now correct.