Newmont Mining Strikes Technical Gold (NEM)

NEM flashes a 'golden cross,' and could be off to the races

   
Newmont Mining Strikes Technical Gold (NEM)

Newmont Mining (NEM) — Newmont Mining is one of the largest gold and copper producers in the world, and thus a traditional hedge against a declining stock market.

Standard & Poor’s sees good things coming out of Newmont, including earnings estimates of 76 cents per share, up from a loss of $5.06 in 2013. S&P recently revised its 2015 earnings estimate to $1.54, up 2 cents. Looking back, second-quarter earnings beat S&P’s estimate by 3 cents.

NEM topped at over $55 in August 2013. Following a decline and a break in June above its 200-day moving average, the stock now appears to be attracting enough buyers to provide the energy needed to complete a break above Wednesday’s high of $26.54.

Note yesterday’s appropriately named “golden cross” — a long-term buy signal that occurs when the 50-day moving average penetrates the 200-day moving average.

The initial trading objective for NEM is $32 (22% higher), but with gold now in an uptrend, long-term investors could see a double from the current price.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/08/trade-day-newmont-mining-nem-stock/.

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