Stock Of The Day – Will The Newmont Mining Rally Continue?

Core Viewpoint - Newmont Corporation's stock is currently trading flat, following a significant increase last week due to a surge in gold prices, with a potential resistance level identified around $58.00, making it the Stock of the Day [1]. Price Action and Resistance - Resistance is defined as a price level where there is substantial sell interest, which can halt or pause upward trends in stock prices [2][3]. - When a stock reaches resistance, the dynamics shift as there are enough shares available to meet buy orders, often leading to a halt in rallies [3]. - A key factor contributing to the formation of resistance is buyer's remorse, where investors regret their purchases if prices decline, leading them to place sell orders if prices return to their buy levels [4][5]. Historical Context - Newmont previously encountered resistance at the $58.00 level, resulting in a price reversal [6]. - After the last reversal at $58.00, the stock experienced a rapid decline to approximately $48.00, indicating a lack of sufficient buyers during that drop [8]. Current Market Dynamics - Currently, as Newmont's stock price approaches the $58.00 level again, there is a lack of remorseful buyers eager to sell, which may facilitate upward movement [9]. - Buyers have had to be aggressive in pushing the price higher, indicating a gap up in the stock price [10]. - There is a strong possibility that the upward movement will continue, but it may also face a pause or reversal upon reaching the $58.00 resistance level [11].