Newmont Sinks 3.94% To $52.36 Amid Bearish Momentum And Key $55.90 Resistance

Candlestick Theory
Newmont (NEM) exhibits a pronounced bearish trend recently, closing at $52.36 after a 3.94% decline, marking four consecutive down days. Key resistance is established near $55.50–$55.89, anchored by the June 2nd peak and subsequent rejections. Support emerges around $52.26–$52.36 (June 6th low/close) and more critically near $51.80 (May 30th low). The June 5th session formed a bearish engulfing pattern near $56.53, reinforced by sustained downward momentum, confirming seller dominance. A break below $51.80 may trigger further downside toward $50.50, while recovery above $55.90 is needed to invalidate the downtrend.
Moving Average Theory
The 50-day MA (currently near $50.80) slopes upward, suggesting an intermediate bullish foundation, but the stock trades below critical long-term averages. The 100-day MA ($49.50) and 200-day MA ($47.30) both trend higher, indicating the broader uptrend since late 2024 remains intact. However, the current price decline below the 50-day MA signals short-term bearish pressure. A decisive break below the 100-day MA would warn of trend deterioration, while the 200-day MA offers major support. The convergence of MAs between $47.30–$50.80 highlights a significant support zone where buyers may re-engage.
MACD & KDJ Indicators
The MACD histogram is entrenched in negative territory, with the signal line above the MACD line, confirming bearish momentum. No bullish crossover is evident, suggesting sustained downward pressure. The KDJ oscillator aligns with this view: The %K line (20) and %D line (30) are deeply oversold but lack convergence for a reversal signal. Both indicators reflect dominant selling pressure, though oversold KDJ levels hint at potential short-term exhaustion, requiring confirmation from price or volume.
Bollinger Bands
Newmont’s price sits near the lower Bollinger Band (~$52), signaling oversold conditions amid expanding bands. The June 6th volatility spike underscores strong downside momentum. However, consistent closes below the lower band are rare, suggesting a tactical rebound toward the middle band ($54) is plausible. The band expansion implies ongoing volatility; a contraction would signal consolidation, while sustained lower-band proximity indicates bearish control.
Volume-Price Relationship
Recent declines are validated by rising volume, with June 6th’s 13.33M shares traded exceeding the 10-day average. The June 2nd rally on 14.95M shares initially suggested accumulation, but subsequent down days on elevated volume confirm distribution. This volume structure reinforces the bearish trend, indicating strong seller conviction. A reversal would require rising volume on upward moves, absent in recent sessions.
Relative Strength Index (RSI)
The 14-day RSI reads 28, deep in oversold territory (<30). Historically, such extremes preceded rallies (e.g., March lows). While oversold, RSI can remain depressed in strong trends. A divergence—where RSI forms higher lows against price lower lows—would signal weakening momentum. Currently, no divergence exists, but oversold conditions suggest downside may be limited near-term, though reversal confirmation is absent.
Fibonacci Retracement
Using the April trough ($44.18) and June peak ($57.74), key Fibonacci levels are identified. The 38.2% retracement ($52.10) aligns with current support near $52.26. Failure here opens risk to the 50% level ($50.96) and the 61.8% support ($49.80), the latter converging with the 100-day MA. The 23.6% resistance ($55.20) aligns with recent rejections, making it a critical hurdle for recovery. Confluence at $52.10 (Fibonacci + recent lows) highlights a tactical pivot zone.
Concluding Analysis
Newmont faces significant bearish pressure, evidenced by cascading closes, oversold but non-divergent oscillators, and volume-backed selling. Confluence exists at $52.10–$52.26 (Fibonacci 38.2% + June 6th low), suggesting a tactical bounce possibility. However, recovery requires overcoming resistance at $55.20–$55.90 and confirmed volume support. Divergences are absent; all indicators agree on near-term bearishness. Probabilistically, a relief rally may emerge from oversold extremes, but sustained bullish reversal necessitates reconquering the 50-day MA ($50.80) with accompanying volume expansion. Until then, the path of least resistance favors downside, with critical support at $49.80.