Watch this stock during the FOMC: $NEM – July 30, 2024
This is Scott McGregor at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to take a look at Newmont Corporation ( NYSE: NEM ).
Newmont ( NYSE: NEM ) is a gold miner, and tomorrow we have the FOMC interest rate decision followed by Fed Chair Powell’s press conference. Now, the market is not expecting any announcement when it comes to cutting interest rates tomorrow. But if we get a dovish Fed I think you’re definitely going to want to keep an eye on gold and the gold miners.
If we quickly look at GLD ( NYSEARCA: GLD ) right now, we can see gold is back above all the major moving averages. You can see that I have drawn this clear sharp downward-sloping trendline. We have GLD ( NYSEARCA: GLD ) back above the 8-day and the 21-day. So this looks like it could be setting up.
If we get a follow-through on this move, I think NEM ( NYSE: NEM ) could also follow-through. So what I see on this chart right here is a clear downward-sloping trendline. It is flagging on the daily chart, and if I zoom out we have a bit of a cup and a tiny little handle. Now, this consolidation is pretty healthy because it’s coming back up to a pretty clear congestion zone right around this area.
What I would do on Newmont ( NYSE: NEM ) tomorrow is, if we do get a positive following FOMC you’d want to watch for a move through that level, coming on volume. And then a potential ad spot could be a bullish move through that clear level of resistance right around that $49.00 zone.
So even if this doesn’t break through and give you a big bullish engulfing candlestick, you could get some started down here. And then add with that move above resistance from over here on Wednesday, July 17th. So a starter position close to the moving averages and then a potential add point with a move through that level coming on volume.
In terms of swing targets, I would probably look up here at this other area of resistance right around 52.60. And then if it does continue, 55.00 seems pretty logical to me. So there’s your setup and some swing targets for Newmont Corporation ( NYSE: NEM ).
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