$NEM(+1.4%) is a top 10 gainer in the S&P 500 Index in the early going. The stock continues to battle heavy resistance just below $34.00. Back on mid August the stock, as well as the entire mining sector, suffered a very damaging breakdown. $NEM fell over 6.3% on Aug. 15th, its second biggest drop of 2018. Since then the downside gap left behind that morning has served as heavy resistance. Multiple rally attempts since the early September lows have all been rejected near this key area.
We are watching the $NEM action closely this week. If the stock can clear the $34.00 area we expect a fresh rally leg to begin, one that could carry shares up to the 200 day moving average. On the downside, a close back below $31.50 would violate last week’s low sending a clear warning sign that the gap resistance area is still in control.
At time of publication we do not have a position in $NEM.