Upgrade Well Timed for Shiny Newmont Mining

Newmont Mining (NEM) was upgraded Thursday by TheStreet's quantitative service. With the nearby gold future trading above $1,300 Friday, the upgrade of NEM may be timed just right.

Let's drill down on the daily and weekly charts of NEM and see if this miner is going to strike gold in the stock market.

In this daily bar chart of NEM, above, we can see declines below $32 have been bought and a new uptrend appears to have started in early July. Prices are above the rising 50-day and 200-day moving average lines. The On-Balance-Volume line has been generally moving higher since December. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and turning up soon.

In this weekly bar chart of NEM, above, we can see prices are above the rising 40-week moving average line. The weekly OBV line is overall positive the past three years and it is interesting that it went neutral during the decline in the second half of 2016. The OBV line has been inching higher the past three months. The weekly MACD oscillator turned bullish (above the zero line) in August and it is still in a positive mode.


In this Point and Figure chart of NEM, above, we can see the base pattern and an upside price target in the $47-$48 area.

Bottom line: It is interesting how things are unfolding. The U.S. dollar has been weak. Some inflation measures are moving up. NEM gets a quantitative upgrade. And the charts and indicators are getting more positive. Trade NEM from the long side risking a close below $36.

Click here to subscribe to Quant Ratings, where you can read our full report on NEM or more than 4,000 other stocks that our service rates in real time every market day. 

However, please note that our Quant Ratings service assesses stocks using a proprietary computer model that runs a variety of factors through quantitative and technical analysis. Ratings do not necessarily reflect the opinions of Jim Cramer or other columnists, who may use different criteria to grade stocks. 

This column originally appeared Friday on Real Money, our premium site for active traders. Click here to get great columns like this from Bruce Kamich, Jim Cramer and other writers even earlier in the trading day.

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