Close to Key Levels - Newmont Mining

Published on Tuesday, 31 January 2012 06:20 Written by Christopher Lynn

New York, January 31st (TradersHuddle.com) - Shares of Newmont Mining Corporation (NYSE:NEM) closed the trading session at $61.22 near its 50 day and 200 day moving averages currently set at $63.12 and $60.33 respectively. Newmont's price action is above the 200 day moving average but below its 50 day moving average, signaling a possible break out.

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 Mining price action seems to be setting up for a tight range between the 200 day moving average as support and the 50 day moving average serving as resistance.

A tiered approach to enter the stock, appears to be the best way to maximize possible movements from the stock, as traders could enter Newmont Mining with a small position and wait for the stock to break out above the 50 day moving average at $63.12, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 200 day moving average set at $60.33 breaks it could mean further downside in the horizon for Newmont Mining.