Newmont Mining Bullish Signs

Published on Sunday, 29 January 2012 16:27 Written by TradersHuddle Staff

New York, January 29th (TradersHuddle.com) - Shares of Newmont Mining Corporation (NYSE:NEM) ended the trading session higher by $1.06 or 1.75% from its previous close. Newmont's price action formed what is considered to be a bullish engulfing candle that could very well signal continuation of trend or reversal on ongoing weakness.

Newmont Mining Corporation (NYSE:NEM) explores, and develops mineral properties. The Company produces gold from operations in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand and Mexico. Newmont also mines and processes copper in Indonesia. Newmont is the biggest gold producer in the world

Newmont's recent stock range has been formed by a trough where calculated support was defined at $57.24 and by a peak that established the resistance level at $64.62, which could be used by traders planning their trades.

Traders wanting to establish a position in Newmont Mining or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk as it shows where the bears were able to push the stock down, before the bulls stepped in.

The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration: