Wednesday, January 9, 2013


Without delving into the fundamental analysis yet, Newmont Mining may be an excellent play at current levels. I believe gold will come back into favor, possibly testing $2,000 an oz. in 2013. NEM as a miner should stand to benefit from that and it pays a nice 3% dividend while you wait for capital appreciation.

Big big picture. 3year weekly chart POC is much higher and we could be looking at a major base developing. I see this as excellent risk:reward opportunity over the course of the next 3 months to 1 year time frame.

The base developing on the 1 year chart also shows the basing triangle with a defined risk either @ 42.95 low or even 42.80 3 year low.

I first started eyeing this when RSI divergence emerged (yellow box). 90 day profile shows price is balancing around its POC ($45.24). I am looking for a pullback to December nPOC for an entry. October nPOC target (red box) would be in line w/ Weekly POC levels ~ $54 - $55 range.

I am even considering legging into a small (1/3rd size) position at these levels and adding @ December POC.

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