Newmont Rallies 10.16% in Three Days as Technicals Signal Bullish Momentum

Newmont (NEM) rose 3.54% in the most recent session, marking its third consecutive daily gain with a cumulative 10.16% advance. This upward momentum follows a recovery from the $52.42 low on June 11, 2025, positioning the stock near its recent resistance zone.
Candlestick Theory
Recent price action reveals a Three White Soldiers pattern formed over the last three sessions (June 11–13), signaling robust bullish momentum. The breakout above the June 5 high of $56.53 establishes a new support level near $55.92, while resistance is evident around $58.15–$58.50 (the May 22–23 and June 13 highs). A close above $58.50 could invalidate this resistance, whereas failure to hold $55.92 may indicate profit-taking.
Moving Average Theory
The 50-day MA ($53.20) crossed bullishly above the 100-day MA ($52.85) in early June, followed by the price reclaiming the 200-day MA ($54.40) on June 12. This alignment confirms a short-to-medium-term uptrend. The ascending 200-day MA reinforces long-term bullish sentiment. Current price trades at $57.90, well above all three moving averages, though stretched proximity to the 50-day MA suggests potential near-term consolidation.
MACD & KDJ Indicators
MACD shows a bullish crossover with histogram bars expanding upward since June 11, supporting trend continuation. KDJ readings (K: 87, D: 78, J: 105) reflect overbought territory, with the J-line exceeding 100. While this signals strong momentum, the parabolic rise in K and D lines warrants caution for a short-term pullback. No bearish divergence is observed between KDJ and price, maintaining alignment with the uptrend.
Bollinger Bands
Bands contracted significantly during the June 6–10 consolidation ($52.08–$54.51), indicating reduced volatility. The subsequent expansion alongside the three-day rally culminated in the price closing above the upper band ($57.30) on June 13. This deviation suggests overextension. A reversion toward the middle band ($54.90) appears probable to absorb overbought pressure.
Volume-Price Relationship
Volume surged 50% above the 20-day average during the three-day rally, peaking at 19.38 million shares on June 13. This accumulation confirms institutional participation in the breakout. Notably, the June 6 sell-off on high volume (13.37 million shares) failed to breach $52.08, establishing it as strong support, now validated by follow-through buying.
Relative Strength Index (RSI)
The 14-day RSI reads 74, entering overbought territory (>70). While this warns of potential exhaustion, the indicator’s upward slope and alignment with volume-backed price gains mitigate immediate reversal risks. Historically, NEM’s RSI has peaked near 80 during extended rallies (e.g., April 24–25), suggesting room for further upside before sustained mean reversion.
Fibonacci Retracement
Applying Fib levels to the March 31 low ($42.04) and June 13 high ($58.15), key retracement zones emerge. The 38.2% level ($52.50) aligned with the June 11 low ($52.42), providing springboard support for the current rally. The 23.6% level ($54.80) now serves as secondary support. Resistance is anticipated near the 0% extension level ($58.15), with a breakout potentially targeting the 161.8% extension ($62.50).
Confluence and Divergence
Confluence is observed at $55.90–$56.50, where the 200-day MA, volume-backed breakout point, and 23.6% Fib level cluster, solidifying it as critical support. Divergence appears between overbought KDJ/RSI readings and continued price strength, implying near-term consolidation is more likely than an abrupt reversal. The MACD and volume trends negate bearish implications from momentum oscillators, preserving bullish bias above $55.90.