Newmont Mining ( NEM ) - weekly chart overbought.NEM is one of the darlings of gold mining stocks, it has seen a phenomenal run-up, but I expect a retracement soon. Tighten stops if you are long, new would-be buyers should wait for a better entry.
NEM trade ideas
NEM: Shorting the topLet's see if we catch this top here. Looking for a retest of the KEL below.
Stop loss at 41.39, and risking a small amount (0.5-1%) is fine.
Gold futures and spot look ready to move down and NEM is extremely overbought here.
You can also take a pair trade against GLD, other miners, etc. I'll share a few example setups in the comments.
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Ivan Labrie
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Risk disclaimer: My analysis is provided as general market commentary and does not constitute investment advice. I will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
XME Components Analysis Number 7: NEM (Newmont Mining)I have recently published a series of bullish articles about-XME.
NEM-is one of the components of-XME. The strength of this chart speaks for itself -
It is one of the precious metals stocks which is contributing to the strength in-XME.
XME-is the-SPDR S&P-Metals and Mining ETF-which offers broad exposure to industrial-and precious metals and mining, with a strong emphasis at the lower end of the capitalization spectrum. It holds 25 components in an equal weighted market cap.
I believe by showing you some of the individual components of-XME you will understand why I am very bullish towards the upward move in-XME.
Don.
NEMWhen I began posting charts on this position. I was told by many in Chat it was a "Short". I'll remain Long here.
NEMGold and miners have taken a beating in this fake and manipulated market. This has been a hard trade for the gold bulls but in the end game gold I think will win. We see Ichan and Soros taking longs in this sector and physical and thus with the manipulated market I think these will move higher. I have placed a stop at bottom of gap and that is about 3.00 risk so need a 6:++ move to get 2:1 but with long term good potential here
Watch FREE CASH FLOW to understand underlying valuationHere's what investors and traders routinely miss: Free cash flow yield.
What is free cash flow? It is what is truly left over from running a business. If you purchased a business and then held it for yourself to reap the benefits, then you'd want to understand free cash flow. Search for it online to understand the nuances. A main element is that you add back in the depreciation, which is a non-cash charge, to earnings.
Since the market is an M&A (Mergers and Acquisitions) supported market, then you want to look at the market the same way that M&A investors do and they look at Free Cash Flow Yields. Why? Because FCF is what enables you to pay off debt if you own the company outright.
Keep in mind too that data isn't published until well after quarter-end, so you do need to pay attention to EARNINGS REPORT dates. This is an important reason why you need to know what price a stock was when it reported earnings, because that is when investors learn the new data point on free cash flow.
Long live logic and rational thinking.
Tim
9:50AM EST 3/28/2016 NEM 25.43 last.
Oh - buy NEM down at $21 if possible, because I think that is an attractive free cash flow yield; $700 million on 1.3 times sales on 7.7Billion = or 7.7% and exit at 6% FCF Yield.
NEM - 2hrPicked up a tranche of NEM (gold miner) this morning at 24.89. Don't know if she'll see the .50 retrace at 21.89. Tight stop would be 20.36, but I'll give her the benefit of the doubt for now and manage stop manually.
NEWMONT MINING: LONGNEM is a stock I bought recently that has seen some nice gains. For fundamental reasons this stock has looked very attractive for a long time. I recent bought as technicals finally confirmed what my fundamental analysis was telling me.
You can see price broke out from channel, but found a bottom around 16.00. From there we broke short term down trend line, and broke back into the voided channel.
Price came through 100 period moving average, and is coming towards 20.00 area resistance. This level also intersects with 200 period moving average.
After a break of $20 looking for price to head to $27. Plan to be in this trade for a long haul, with a long term target well above current price.
NEM - all that glitters?Re-test and confirmation of the key $27 price point is suggestive of further upside on a break over Fridays high. Buying was accompanied by reasonable volume and the price closed near the high of the session. The stock is sitting above all key moving averages
Automatic markup of Elliott waves.Sometimes, it is useful. Here we see all five waves of the bearish trend.
WE STILL HAVE TO WAIT A BIT 2.It seems that this share is amenable to prediction. Published 8 days ago.
