Newmont Mining Gann Angles

Newmont Mining (NEM) is a gold stock with plenty of institutional interest. This means due to its huge following it is a good candidate for Gann Angles.

Gold and gold stocks are waiting for the FED and other central banks to swing to dovish monetary policy, Powell hinted this in his last speech, and next week the FED is expected to hike 0.25% to 2.5%, however the three previously planned hikes in 2019 look very doubtful. 

In short, the hike from near 0% to 2.5% is all the US economy can take, as things start to break (i.e. corporate credit funding stuff like share buybacks.) with the US 10 yr above 3%. A concern to Powell is the US stock market gain contributes to a huge amount of tax revenue to the US treasury and higher interest rates will take this away (April 2019 is tax time), therefore Powell will take great care not to break the stock market. 

There is a monetary policy change coming in 2019, a swing to more dovish tone which should support gold and gold stocks. 

The Newmont Mining Gann and Wyckoff Chart is one to keep an eye on. 
 

NEM


 

Disclosure: To help you applying Richard Wyckoff and Richard Ney logic a wealth of knowledge is available via our 

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