Newmont Surges 6.89% On Bullish Momentum And Strong Volume

Newmont (NEM) demonstrated strong bullish momentum during the latest trading session, surging 6.89% to close at $65.75. This advance marks the second consecutive day of gains, resulting in a cumulative 7.05% increase over this period, indicating robust buying interest at current levels.
Candlestick Theory
The recent price action exhibits notable bullish signals. On July 24, 2025, a hammer pattern emerged (low: $59.96, close: $61.51), with the long lower wick indicating rejection of lower prices. This was followed by a decisive bullish engulfing candle on July 25 (open: $61.51, low: $63.36, high: $66.57, close: $65.75), where the body completely engulfed the prior session’s range. The $59.96–$60.00 zone now functions as immediate support, while the $66.57 swing high serves as primary resistance. A confirmed break above this level may trigger further upside.
Moving Average Theory
The 50-day SMA ($58.24), 100-day SMA ($55.82), and 200-day SMA ($50.40) all slope upward, confirming a long-term bullish trend. The July 25 close at $65.75 positions Newmont comfortably above all key SMAs, with the shorter 50-day SMA leading. The orderly arrangement (price > 50-day > 100-day > 200-day) indicates robust trend strength. Notable support resides near the 50-day SMA ($58.24), which aligns with the recent consolidation low ($59.96).
MACD & KDJ Indicators
The MACD histogram reflects growing bullish momentum, with the MACD line (12,26,9) accelerating above its signal line following a recent crossover. However, the KDJ oscillator suggests caution: %K (92.7) and %J (87.4) probe overbought territory (>80), while %D (96.2) diverges slightly by failing to confirm the latest high. Though momentum remains positive, this divergence may foreshadow short-term consolidation if %K reverses below 80. The MACD’s sustained upward trajectory tempers immediate bearish concerns.
Bollinger Bands
Volatility expanded sharply on July 25 as price breached the upper Bollinger Band ($64.30, 20-day SMA +2σ), closing near the session’s high. Bandwidth widened by 38% compared to the prior week, signaling increased directional conviction. Such expansions often precede sustained trends but may also invite profit-taking. The middle band ($61.15) now acts as dynamic support. Failure to hold above the upper band may trigger a retracement toward $62.50.
Volume-Price Relationship
Volume surged to 30.89 million shares on July 25—134% above the 20-day average—validating the bullish breakout. This volume spike coincided with the largest single-day gain in the dataset, underscoring buyer conviction. The two-day rally’s cumulative volume (44.08M shares) exceeds any down-day volume since mid-June, confirming accumulation. Sustained volume above 20M shares would bolster continuation.
Relative Strength Index (RSI)
The 14-day RSI (74.3) climbed above the 70 threshold, signaling overbought conditions. Historically, similar RSI peaks (e.g., April 11, 2025: RSI 76.2) preceded brief consolidations rather than reversals during this uptrend. Given recent momentum, RSI may remain elevated; however, a decisive break below 65 may signal waning upside pressure. Traders should monitor for divergence on any new highs.
Fibonacci Retracement
Applying Fibonacci levels to the major swing low of $37.18 (December 20, 2024) and the recent high of $66.57 (July 25, 2025) reveals critical retracement supports: 61.8% ($48.41), 50% ($51.88), 38.2% ($55.34), and 23.6% ($59.63). The July 24 low ($59.96) respected the 23.6% level precisely before reversing upward. This confluence zone ($59.63–$60.00) now anchors as tactical support; failure here may target $55.34. The Fibonacci projection suggests intermediate resistance near $69.00 (127.2% extension).
Concluding Synthesis
Multiple indicators align favorably for Newmont. The bullish engulfing candle, SMAs stacking bullishly, expanding volume, and MACD acceleration collectively suggest upside continuation. Key support rests at $59.50–$60.00 (Fibonacci 23.6% + candlestick low), with resistance at $66.57–$67.00. Divergences in KDJ and elevated RSI encourage vigilance for near-term consolidation, though trend strength remains intact. The primary risk scenario would require a sustained break below $59.50, potentially triggering profit-taking toward $55.30–$55.50 (38.2% Fibonacci + 100-day SMA confluence).