Newmont NEM Technical Analysis

On my monthly chart the NEM share price is very close to an important downtrending resistance trendline that extends back to the year 1987. Beyond the near term, the underlying math models remain strong for resource stocks, and Newmont is no exception. This would suggest that we might see a breakout here after a suitable period of indigestion. A breakout would of course be considered extremely bullish given the prominence of the trendline.

On the other hand, a failure at resistance would produce what would begin to look like a well defined head and shoulders technical signature with negative implications. I would expect the math models to confirm if this scenario begins to emerge.

Just a heads up at an important fork in the road for Newmont. ($46.20 U.S.)