Potential Double Bottom Breakout (Long only on breakout close)
Newmont Mining (NEM) is consolidation within a sideways channel after making a clustered double bottom. Volume has dropped off as the trading session nears its end, but price action remains rather positive.
The 4H chart shows that price has been able to breach resistance at $20.28, which is just more supporting evidence that a breakout close is needed to confirm the breakout and not get sucked into a false break.
A close above the channel will help price trend to $20.77, on it's way to challenge the 200-4H EMA.
Additional topside projections are at $21.46 and $22.01, while downside support on a channel reject are at $19.60 and $18.75 before testing the bottom of the channel.
As always, confirmation is key. Failure to do so automatically scraps trade idea until a new set-up presents itself. The GDX has similar price formation and is trading off of resistance. The mining sector ETF could provide a leading indicator, but it's not indicative of single stock performance.
The 4H chart shows that price has been able to breach resistance at $20.28, which is just more supporting evidence that a breakout close is needed to confirm the breakout and not get sucked into a false break.
A close above the channel will help price trend to $20.77, on it's way to challenge the 200-4H EMA.
Additional topside projections are at $21.46 and $22.01, while downside support on a channel reject are at $19.60 and $18.75 before testing the bottom of the channel.
As always, confirmation is key. Failure to do so automatically scraps trade idea until a new set-up presents itself. The GDX has similar price formation and is trading off of resistance. The mining sector ETF could provide a leading indicator, but it's not indicative of single stock performance.
