Newmont (NEM) Offering Possible 10.62% Return Over the Next 27 Calendar Days

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Newmont’s most recent trend suggests a bearish bias. One trading opportunity on Newmont is a Bear Call Spread using a strike $41.00 short call and a strike $46.00 long call offers a potential 10.62% return on risk over the next 27 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $41.00 by expiration. The full premium credit of $0.48 would be kept by the premium seller. The risk of $4.52 would be incurred if the stock rose above the $46.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Newmont is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Newmont is bearish.

The RSI indicator is at 35.49 level which suggests that the stock is neither overbought nor oversold at this time.

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Precious metal mining companies typically follow precious metals. Last week, all four precious metals regained some strength.

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Mon, 14 May 2018 20:17:09 +0000
All four precious metals appreciated on May 10, as forecast by RSI (relative strength index) scores the previous day. Gold rose 0.73% to $1,320.80 per ounce. Silver rose ~1.4% to $16.70, platinum rose 0.98% to $926.50, and palladium rose 2.4% to $1,002. Technicals and macroeconomic events boosted precious metals.

How Are Miners’ Correlations Moving in May?
Thu, 10 May 2018 16:00:02 +0000
In this part of the series, we’ll look at the correlation between gold and four mining stocks: New Gold (NGD), Newmont Mining (NEM), Hecla Mining (HL), and Kinross Gold (KGC). For the most part, mining stocks move in tandem with gold prices. Among these four miners, Newmont has shown the highest correlation with gold this year, while Hecla has shown the lowest correlation.

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