Newmont Slumps 4.12% As Bearish Technicals Signal Further Downside Risk

Newmont (NEM) declined 4.12% to close at $56.75 on significant volume of 12.60 million shares in the latest session. This bearish momentum shift warrants comprehensive technical assessment across multiple indicators.
Candlestick Theory
Recent price action reveals a confirmed bearish reversal pattern. The sequence of June 23rd's strong bullish candle (close $59.46), followed by June 26th's small-bodied doji near highs ($59.19), and the subsequent large bearish engulfing candle on June 27th ($56.75) forms a classic Evening Star pattern. Key support now emerges at $55.50 (June's consolidation floor and May's swing high). Resistance is firm at $59.50, the convergence point of June's multiple failed breakout attempts and the lower shadow rejection on June 26th.
Moving Average Theory
The moving averages exhibit a deteriorating trend structure. The 50-day MA ($57.25) crossed bearishly below the 100-day MA ($55.80) last week, while the 200-day MA ($49.10) continues rising. Current price ($56.75) sits below the 50-day MA for the third consecutive session, confirming short-term bearish bias. The descending 50/100-day configuration suggests intermediate-term weakness, though the rising 200-day MA indicates the longer-term trend may still be constructive pending further price action.
MACD & KDJ Indicators
Momentum oscillators signal increasing bearish pressure. The MACD histogram turned negative in late June, with the signal line (9-period EMA of MACD) crossing below the MACD line - a clear sell signal. KDJ exhibits similar deterioration: The %K line (47) plunged below %D (62), while %J (17) entered oversold territory. Both indicators show accelerating downward momentum without divergence, suggesting the current downtrend may have further room to extend.
Bollinger Bands
Volatility expansion accompanies the recent decline. The price breached the lower Bollinger Band ($57.10) decisively on June 27th, typically indicating oversold conditions but also confirming strong downside momentum. Band width expanded during this breakdown, reflecting increased selling pressure. A reversion towards the 20-period midline ($58.40) may occur, but the breach indicates bearish control.
Volume-Price Relationship
Volume patterns validate bearish momentum. The June 27th decline occurred on 12.60 million shares – 35% above the 10-day average volume – confirming the breakdown with strong participation. Notably, the June 24th rejection at resistance ($58.64) also occurred on high volume (14.91 million shares), indicating distribution. This two-step volume confirmation (high volume at resistance, followed by high-volume breakdown) significantly weakens the near-term technical structure.
Relative Strength Index (RSI)
The 14-day RSI at 41 currently resides in neutral territory but displays a steepening downward trajectory. While not yet oversold (<30), the momentum shift from recent highs near 66 (June 23rd) demonstrates rapid weakening. The RSI's failure to exceed 70 during June's rally attempts prior to the breakdown suggests underlying weakness existed before the current selloff, limiting the indicator's warning potential in this specific instance.
Fibonacci Retracement
Measuring from the April peak ($58.92) to the May trough ($50.93) reveals critical levels. The recent breakdown occurred just below the 61.8% retracement ($56.20). Immediate Fibonacci support clusters at the 50% level ($54.92) and the 38.2% level ($53.65). These align significantly with the psychologically important $55.00 area and the 100-day moving average ($55.80), creating a major support confluence zone between $54.92 and $55.80. A sustained break below this zone would indicate a more profound trend reversal.
Confluence & Divergence
Multiple confluent bearish signals exist: Breakdown confirmation via high volume, bearish candlestick reversal (Evening Star), death cross of the 50-day below 100-day MA, and momentum oscillator sell signals (MACD, KDJ). The only technical cushion appears at the $54.92-$55.80 support confluence (Fibonacci 50% + 100-day MA). No significant bullish divergences are yet apparent in momentum oscillators relative to the recent price low. This confluence of bearish evidence suggests the path of least resistance remains downward, though a technical bounce near major support ($55.50-$55.80) appears probable given oversold KDJ readings and proximity to the lower Bollinger Band.