Upgrade your membership to see all of the expert analysis we have published on NEM now!

Newmont Mining Corporation's (NEM +$1.80 or +2.97% to $62.31) ended less than -5% from its all-time high today. While there is not much overhead supply to hinder its progress, confirming gains with above average volume to new highs would be a reassuring sign worth watching for in the days ahead. Concern has risen while it has failed to keep pace with the strongest market leaders. Its Relative Strength rank has slumped to a mediocre 66, below the 80+ guideline normally expected of strong buy candidates under the fact-based system.

One more drawback is that management has little ownership interest, meanwhile its is also already heavily owned by institutional investors.  The investment system guidelines call for investors to look for stocks being discovered and accumulated by an increasing number of institutional investors (the I criteria).  Its Accumulation/Distribution rating has slumped to a D+, another data point suggesting that it has not been under heavy accumulation recently. The C and A criteria are satisfied as the company has demonstrated solid quarterly sales revenues and earnings increases (above the +25% minimum guideline) in recent comparisons and it has a good annual earnings history. Leadership in the Mining - Gold/Silver/Gems group (L criteria) is encouraging, however other high-ranked leaders from the group currently listed on the Featured Stocks page have been clearly outpacing Newmont.

Newmont Mining Corporation's (NEM +$2.43 or +4.02% to $62.85) gapped up today, rallying with nearly twice its average volume for a considerable gain.  It traded above its pivot point and hit a new 52-week high, yet closed below its pivot point near the middle of its intra-day trading range.  No overhead supply remains to hinder its progress.  Confirming gains with above average volume would be a reassuring sign in the days ahead.  The C and A criteria are satisfied as the company has demonstrated solid quarterly sales revenues and earnings increases (above the +25% minimum guideline) in recent comparisons and it has a good annual earnings history.

Buyable breakouts require that the stock rise above its pivot point with considerable gains and those gains must be backed by a minimum of at least +40%-50% above average volume, ideally much more. Pyramiding into a position may be the most prudent way to let the market action dictate investors' entries. As always, it is of the utmost importance to sell a stock if it drops 7-8% below your purchase price. 

Leadership in the Mining - Gold/Silver/Gems group (L criteria) is encouraging, and there are other high-ranked leaders from the group currently listed on the Featured Stocks page. Many other gold mining interests are headquartered overseas which increases their potential pitfalls due to geopolitical shifts.

In a 6/22/10 Stock Bulletin (read here) members were told - "Look for an opportunity to properly pyramid buying efforts with chasing the stock more than 5% above its Pivot Point or 'Max Buy' level."  Confirming gains on heavy volume in the coming days and weeks might come after it is too extended from an ideal buy point. Buyable breakouts require that the stock rise above its pivot point with considerable gains and those gains must be backed by a minimum of at least +40%-50% above average volume, ideally much more. Pyramiding into a position may be the most prudent way to let the market action dictate investors' entries. As always, it is of the utmost importance to sell a stock if it drops 7-8% below your purchase price. 

The America-based mining firm had reassuring leadership (L criteria) from other Mining - Gold/Silver/Gems industry firms as a favorable backdrop. Many other gold mining interests are headquartered overseas which increases their potential pitfalls due to geopolitical shifts. The C and A criteria are satisfied as the company has demonstrated solid quarterly sales revenues and earnings increases (above the +25% minimum guideline) in recent comparisons and it has a good annual earnings history.

Newmont Mining Corporation (NEM +$1.61 or +2.64% to $61.95) gapped up today, but volume behind its gain was light again. It still marked a new high close, and no overhead supply remains to act as resistance. It briefly topped its January 2006 all-time high ($62.72), but closed in the lower half of its intra-day range. Volume behind recent gains has been below the minimum guidelines (since its mid-May breakout faltered). The America-based mining firm has very reassuring leadership (L criteria) from other Mining - Gold/Silver/Gems industry firms as a favorable backdrop. Many other gold mining interests are headquartered overseas which increases their potential pitfalls due to geopolitical shifts. The C and A criteria are satisfied as the company has demonstrated solid quarterly sales revenues and earnings increases (above the +25% minimum guideline) in recent comparisons and it has a good annual earnings history. 

In a 6/22/10 Stock Bulletin (read here) members were told - "Look for an opportunity to properly pyramid buying efforts with chasing the stock more than 5% above its Pivot Point or 'Max Buy' level."  Confirming gains on heavy volume in the coming days and weeks might come after it is too extended from an ideal buy point. Buyable breakouts require that the stock rise above its pivot point with considerable gains and those gains must be backed by a minimum of at least +40%-50% above average volume, ideally much more. Pyramiding into a position may be the most prudent way to let the market action dictate investors' entries. As always, it is of the utmost importance to sell a stock if it drops 7-8% below your purchase price.

Newmont Mining Corp
Ticker Symbol: NEM (NYSE)	Industry Group: Mining- Gold/Silver/Gems	Shares Outstanding:  478,600,000
Price: $59.60 6/22/2010  3:25PM	Day's Volume: 4,840,200 6/22/2010 3:25PM	Shares in Float:  483,000,000
52 Week High: $61.78 6/18/2010	50-Day Average Volume: 9,318,400	Up/Down Volume Ratio: 1.4
Pivot Point: $59.67 5/12/2010 high plus $0.10	Pivot Point +5% = Max Buy Price: $62.66	Web Address: http://www.newmont.com

   CANSLIM.net Profile: Newmont Mining Corporation (NEM), together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. Its assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico. As of December 31, 2009, Newmont had proven and probable gold reserves of approximately 91.8 million equity ounces and an aggregate land position of approximately 33,400 square miles. The C and A criteria are satisfied as the company has demonstrated solid quarterly sales revenues and earnings increases (above the +25% minimum guideline) in recent comparisons and it has a good annual earnings history. The group's Relative Strength rank of 91 provides a nice reassurance for the L criteria. The company was founded in 1916 and is headquartered in Greenwood Village, Colorado.  Many other gold mining interests are headquartered overseas which increases their potential pitfalls due to geopolitical shifts.

What to Look For and What to Look Out For: Look for the stock to confirm a new technical buy signal by confirming its recent gain above its $59.67 pivot point with gains on heavy volume in the coming days and weeks. Buyable breakouts require that the stock rise above its pivot point with considerable gains and those gains must be backed by a minimum of at least +40%-50% above average volume, ideally much more.  As always, it is of the utmost importance to sell a stock if it drops 7-8% below your purchase price. This high-ranked leader should remain on an active watchlist and could be considered as a new buy candidate in the event it closes above its pivot point on the necessary volume needed to trigger a technical buy signal. Look for an opportunity to properly pyramid buying efforts with chasing the stock more than 5% above its Pivot Point or "Max Buy" level.

Technical Analysis: NEM is currently pulling back to retest its pivot point and prior chart highs. Recent gains lacked the heavy volume required to trigger a proper buy signal. No overhead supply remains to act as resistance. Keep in mind it is also near its January 2006 all-time high ($62.72) and it is within striking distance of a long-term technical breakout.  Newmont is trading above its upward sloping 50-day moving average line, which is another healthy sign considering all the major averages are currently trading below their respective 50 DMA lines. In addition, the 50 DMA line is sloping higher and is currently above its longer term 200 DMA line which is also another positive.