Newmont Mining Closing in to Resistance

Published on Saturday, 04 September 2010 20:44 Written by Christian Paolinetti

New York, September 4th (TradersHuddle.com) - Shares of Newmont Mining Corporation (NYSE:NEM) are trading very close to calculated resistance at $61.92 with the current price action closing at just $60.87 placing the stock near levels that make it difficult to buy.

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 current stock range is defined by current calculated support defined at $55.81 and by the resistance level at $61.92, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Newmont Mining, as the stock is well above support, however, as the stock pulls back towards $55.81 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $61.92 then traders will get an opportunity to enter Newmont Mining stock by establishing a position as the stock moves to a higher range.