Mining Stock Shows Potential Upside
11/11/2010 12:01 am EST
Shares of Newmont Mining Corp (NEM) have recently reversed from correction lows at $57.52. NEM rallied on Monday, November 8, setting up a potential bullish trade.
With gold and silver sales on fire, gold is at all-time highs and silver at 30-year highs, and metals mining companies are in demand by investors who want to play this sector while not owning the actual bullion itself.
Newmont Mining closed at $62.63 on Monday, November 8. This sets up a strong support level at the prior $57.52 lows.
A bullish trade in NEM with a sell stop at $57.50 a share—8% below Monday’s close—has the potential to run to at least $65.00 a share in short order, and potentially to $69.00 a share over the next few weeks.By Frank Kollar of FibTimer.com