Newmont Corporation (NYSE:NEM ) stock was last seen up 2.4% to trade at $95.01, poised to snap its four day losing streak. The 260-day moving average rushed in as support, keeping losses in check.Â
This trendline has yielded bullish returns in the past. According to Schaeffer’s Senior Quantitative Analyst Rocky White, NEM is trading within 0.75 times the 260-day moving average’s 20-day average true range (ATR), after spending at least 80% of the previous two weeks and 80% of the prior 42 trading sessions above that trendline. This setup has appeared 11 times during the last decade, after which the stock was higher one month later 55% of the time, averaging a 6% gain. A comparable rally from current levels would place Newmont stock at $100.71.Â
The stock also sports a lofty Schaeffer’s Volatility Scorecard (SVS) of 80 out of 100, suggesting the equity has consistently realized higher-than-expected volatility as of late.
