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Newmont Mining Corp (NYSE:NEM) bulls must have been feeling great as recently as mid-August. But, since then, the gold and copper miner has started to fall off its lofty perch — and the chartwork shows plenty of further downside ahead.

Having declined ever more rapidly in the last few days, NEM completed a Megaphone Top pattern on Tuesday. Based on this bearish signal, the Profit Scanner powered by Recognia sees NEM dropping another 14%–18% in the next eight weeks.

On NEM’s chart (below), you can see the dramatic price swings that typify the Megaphone Top. First, the stock makes two successively lower lows between three higher highs. Then a more decisive move — a reversal below the second (and lowest) low — confirms that shares are, in fact, headed much lower.

In this case, the Profit Scanner sets an intermediate-term downside target at $31.25–$32.75. So, not only should long-term shareholders of NEM consider taking profits…but opportunistic traders could stand to make fat bearish profits from a short or a put option play.

Profit Scanner powered by Recognia can help traders of all levels uncover these signals to determine the best timing to buy. Or use Profit Scanner’s technical insight to validate your own trading ideas. See how easy this powerful tool is to help you uncover hidden opportunities in the market.