Newmont Stock Bounces 2.4% as 260-Day Moving Average Holds Support
Newmont shares rose 2.4% on Thursday, snapping a four-day losing streak as the 260-day moving average provided support, with historical data suggesting a potential 6% average gain over the next month.
Newmont Corporation shares bounced 2.4% to $95.01 on Thursday, snapping a four-day losing streak as the 260-day moving average provided key support. The rebound comes after a period of weakness in gold mining stocks, with Newmont's price action drawing attention from technical traders.
The 260-day moving average has historically acted as a reliable support level for Newmont. According to Schaeffer's Senior Quantitative Analyst Rocky White, the stock is currently trading within 0.75 times the 20-day average true range of this trendline, after spending at least 80% of the previous two weeks and 80% of the prior 42 trading sessions above it. This setup has occurred 11 times in the past decade, with the stock higher one month later 55% of the time, averaging a 6% gain. For gold and precious metals traders, this technical signal may indicate a short-term buying opportunity, especially if gold prices remain supported by macroeconomic factors such as central bank demand and geopolitical uncertainty. Traders can monitor real-time gold quotes on NowPrice to gauge the broader precious metals environment.
Looking ahead, traders will watch whether Newmont can sustain its bounce above the moving average and challenge recent highs. Key levels to monitor include the $100 psychological resistance and the 50-day moving average. On the downside, a break below the 260-day moving average could signal further weakness. The upcoming US inflation data and Federal Reserve commentary will also be crucial for gold and gold mining stocks, as rate expectations directly impact the sector.