Stock to Sell #4 – Newmont Mining Corp. (NEM)
Newmont Mining Corp. (NYSE:NEM) is one of the largest gold and copper producers in the world. Longer term, a rise in the price of gold should add to earnings, but short-term, precious metals are in a bear market.
A recent recovery rally from its March low of $38.50 appears to be stalling at its 50-day moving average, now at $42.10. Buying volume is declining, and so the stock doesn’t appear to have enough momentum to complete a reversal up.
The current rally provides owners of the stock a chance to sell; however, if gold prices stabilize, this stock could recover to its bearish resistance line, now at $50.
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