Newmont Stock Surges 5% as Bullish Technicals Signal Upside to $57

Candlestick Theory
Newmont's recent candlestick pattern is distinctly bullish, with the last two sessions forming strong green bodies closing near their highs following a brief consolidation around $52 support. The most recent candle's long body (54.14 low to 55.96 high, closing at 55.92) signals robust buying pressure after breaching minor resistance near $53.50. Key support now rests at the $52.00-$52.50 zone, aligning with the June 10 and 11 reversal points, while resistance emerges near the June 5 swing high of $56.53 and the psychological $57.00 level.
Moving Average Theory
The 50-day MA has crossed above the 100-day MA, forming a bullish golden crossover, while the price currently trades above all three key moving averages (50-day, 100-day, and 200-day). This configuration suggests strengthening intermediate momentum. The 200-day MA near $48 anchors the long-term uptrend, having supported multiple rebounds since January. Short-term pullbacks may find dynamic support at the rising 50-day MA (~$52.50), while sustained trading above the 100-day MA (~$50.80) reinforces positive sentiment.
MACD & KDJ Indicators
MACD shows accelerating bullish momentum, with the histogram expanding positively since early June and the signal line maintaining an upward trajectory. KDJ readings are elevated but not yet overbought (K:89, D:78, J:111), reflecting strong upward impulse. While MACD's persistence in positive territory supports continuation potential, the KDJ's stretched position near overbought levels warrants caution for near-term consolidation. No bearish divergence is evident, though proximity to overbought KDJ thresholds may temper upside in the immediate term.
Bollinger Bands
Price has surged above the upper Bollinger Band ($54.80) with notable expansion in band width, signaling heightened volatility and potential continuation strength. Such breakouts often precede extended trends when accompanied by volume confirmation. The bands' expansion after a brief contraction in late May aligns with the current momentum surge. A close back inside the bands would suggest consolidation, but current positioning favors upside exploration toward the $57–$58 zone, near the April peak.
Volume-Price Relationship
The rally's validity is confirmed by rising volume, particularly the 12.9M shares traded on June 12 – the highest volume session in over a month. Volume on up days (June 9, 12) notably exceeds down-day volume (June 6, 10), indicating accumulation. The volume uptick during the $52-$55 breakout surpasses the prior resistance test in May, supporting sustainability.
Relative Strength Index (RSI)
RSI (14-period) reads 69, approaching overbought territory but not yet breaching the 70 threshold. This positioning allows room for further upside before traditional overbought caution applies. The indicator's steady climb from mid-May (sub-40) without bearish divergence underscores strengthening momentum. Historically, Newmont's RSI has peaked near 75 during powerful rallies (e.g., April), suggesting the current reading may not yet indicate exhaustion.
Fibonacci Retracement
Using the April trough ($37.18) and June peak ($58.68), key retracement levels provide strategic zones: 23.6% ($52.80) and 38.2% ($50.90). The recent bounce from the 23.6% level ($52.36 on June 6) reinforces its significance as support. The 61.8% retracement ($46.50) aligns with the 200-day MA and represents major support if a deeper pullback occurs. Upside targets include the 78.6% extension near $57.50, which converges with the April high resistance.
Confluence & Outlook
Multiple signals validate Newmont's bullish posture: Moving average alignment, MACD momentum, volume-backed breakout, and RSI trajectory collectively suggest upside toward the $56.50–$57.50 resistance zone. However, proximity to KDJ overbought thresholds and psychological resistance near $57 warrant vigilance for consolidation. Key confluence exists at $52.50–$53.00 (50-day MA, 23.6% Fibonacci, prior swing highs), which should hold to preserve the near-term uptrend. A decisive break above $57 with sustained volume may trigger momentum toward $60, while failure to hold $52.50 could signal retesting the 38.2% Fib level near $51.00.