The form exhibited by the decline in Newmont Mining (NEM) from its September 22 high at 65.50 into Monday's low at 57.31 has the right look of a completed correction into the area of the sharply rising 200-day moving average (57.18) amidst a glaring positive momentum (RSI) divergence.

This technical combination represents critical support that so far has provided a launch pad from where the price structure can pivot strongly to the upside. As long as last week's low remains intact at 57.31, this should be the start of a new upleg within an intermediate-term bull trend.

Next upside targets: 59.50/60, and then 60.50-61.00.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.