Newmont and the possible reversal
Updated
After the huge selloff in the gold market there are several signs of a possible reversal of Newmont.
So let´s sum up the body of evidence:
1. The price is right at a significant support level
2. It has formed a hammer reversal pattern at the support level
3. We have a positive divergence with the RSI and MACD
4. At the support level we saw a spike in the volume although the price was not selling off anymore. This is a sign of a allocation
5. A Entry when the RSI reading was below 35 in the daily chart was in the recent past a profitable strategy
So let´s sum up the body of evidence:
1. The price is right at a significant support level
2. It has formed a hammer reversal pattern at the support level
3. We have a positive divergence with the RSI and MACD
4. At the support level we saw a spike in the volume although the price was not selling off anymore. This is a sign of a allocation
5. A Entry when the RSI reading was below 35 in the daily chart was in the recent past a profitable strategy
Trade closed: stop reached
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