{"id":441708,"date":"2026-11-06T16:00:23","date_gmt":"2026-11-06T09:00:23","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/newmont-stock-breaks-out-of-a-two-month-downtrend-but-buyers-have-a-test-to-pass-441708\/"},"modified":"2026-11-06T16:00:23","modified_gmt":"2026-11-06T09:00:23","slug":"newmont-stock-breaks-out-of-a-two-month-downtrend-but-buyers-have-a-test-to-pass","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/newmont-stock-breaks-out-of-a-two-month-downtrend-but-buyers-have-a-test-to-pass-441708\/","title":{"rendered":"Newmont stock breaks out of a two-month downtrend. But buyers have a test to pass."},"content":{"rendered":"
\n

Gold and other precious metals are showing signs of a potentially significant bullish reversal. <\/p>\n

But not every investor wants to trade physical gold, futures or other metal-linked instruments.<\/p>\n

One stock worth watching is Newmont Corporation (NYSE: NEM), a major gold producer. Its four-hour chart shows a promising technical development, although the most useful part of this analysis is not a prediction. It’s the price map that can help us assess whether the breakout succeeds or fails.<\/p>\n

I’m not recommending that readers buy Newmont. Technical patterns can fail, and even a strong rally in gold does not guarantee that gold-mining shares will follow.<\/p>\n

A downtrend that may have turned into a bull flag<\/p>\n

As discussed in investingLive’s recent gold technical analysis<\/a>, gold has broken above an important declining trendline, raising the possibility of a broader recovery.<\/p>\n

Newmont’s four-hour chart presents an interesting parallel.<\/p>\n

Since early September, NEM has traded inside a descending channel, repeatedly making lower highs and generally struggling to maintain rallies.<\/p>\n

But after declining toward $104.50 in late October, the stock recovered sharply, breaking above the channel’s upper boundary and advancing toward $122-$123.<\/p>\n

That changes the technical interpretation.<\/p>\n

What previously looked like a persistent downtrend may prove to have been a bull flag, a downward-sloping consolidation that can interrupt a larger bullish move before the advance resumes.<\/p>\n

The important distinction is that a breakout does not guarantee the pattern will work. Buyers still need to demonstrate that they can defend the recovery.<\/p>\n

Why $117-$118 may be the most interesting area on the chart<\/p>\n

The chart reveals something particularly useful.<\/p>\n

Newmont has pulled back toward the $117-$118 area, which coincides with the Point of Control (PoC) of the recent trading range.<\/p>\n

For readers unfamiliar with the term, the Point of Control represents the price level where the greatest amount of volume was traded over a selected period.<\/p>\n

It can become an important reference point because considerable trading activity previously occurred there. However, that does not automatically make it support.<\/p>\n

For Newmont, the question is whether the recent breakout has changed market behavior sufficiently for buyers to defend this area.<\/p>\n

A successful retest could strengthen the bullish interpretation. A sustained move below it would indicate that the recovery is losing momentum.<\/p>\n

The stock also faces resistance around $120, making the nearby price structure particularly interesting.<\/p>\n

The Newmont stock price map: What would strengthen or weaken the bullish case?<\/p>\n<\/p>\n

Rather than assuming that the breakout means Newmont is heading higher, I would focus on three possible developments.<\/p>\n

1. Bullish continuation: Above $120, then $122-$123<\/p>\n

If NEM establishes sustained trading above $120 and subsequently clears the $122-$123 resistance area, the bullish case would improve.<\/p>\n

That could bring the September high around $130.75 back into focus.<\/p>\n

It would not guarantee a move toward that level, but it would indicate that buyers have overcome another important obstacle.<\/p>\n

2. Constructive pullback: Holding $117-$118<\/p>\n

A pullback that stabilizes around $117-$118, particularly if followed by a higher low and renewed buying, could provide evidence that the recent breakout is holding.<\/p>\n

This would be constructive even without an immediate rally.<\/p>\n

In fact, watching how a market behaves after an initial breakout can sometimes be more informative than watching the breakout itself.<\/p>\n

3. Failed breakout: Below approximately $115<\/p>\n

Sustained trading below $115 would materially weaken the emerging bullish structure.<\/p>\n

Attention could then shift toward the $112 support area. Further deterioration could eventually put the November low around $104.50 back into focus.<\/p>\n

That would suggest the apparent bull flag breakout had failed, rather than developed into a sustained bullish continuation.<\/p>\n

Gold exposure through a stock is different from owning gold<\/p>\n

There is another important distinction for investors.<\/p>\n

Newmont is a mining company, not a direct substitute for bullion. Its share price reflects gold prices, but also production volumes, operating costs, capital spending and broader equity-market conditions.<\/p>\n

In its third-quarter 2026 results<\/a>, Newmont reported approximately 1.3 million attributable ounces of gold production and $1.9 billion in free cash flow. The company also maintained its full-year production outlook while improving its full-year cost guidance.<\/p>\n

Those fundamentals may matter to investors assessing the company beyond the chart, but they do not eliminate mining-specific risks.<\/p>\n

A recovering gold price can benefit producers, yet Newmont shares can still underperform if costs rise, production disappoints or equity markets come under pressure.<\/p>\n

The lesson: A good map is more valuable than a confident prediction<\/p>\n

What interests me most about Newmont is not simply that it has broken above a descending channel.<\/p>\n

It’s that the chart now provides several identifiable reference areas against which we can evaluate the bullish hypothesis.<\/p>\n

The $117-$118 area may help reveal whether buyers are defending the breakout. A recovery above $120 and $122-$123 would strengthen the continuation case. A sustained decline below $115 would challenge it.<\/p>\n

We don’t need to know in advance which outcome will occur to make the analysis useful.<\/p>\n

For investors exploring possible exposure to a precious-metals recovery through listed companies, Newmont is an interesting stock to investigate further.<\/p>\n

But a potential bull flag is not a reason to buy automatically. Its value lies in understanding what would confirm the opportunity, what would undermine it and when patience may be the better decision.<\/p>\n

What else is interesting for traders and investors today?<\/p>\n

Following a punishing tech rout that saw Nasdaq-100 futures plunge 5,250 points (Almost 17%…!) from their October high, I am tracking whether buyers can turn an initial 800-point bounce off historical support into something more durable. As I broke down in my Nasdaq technical analysis after yesterday’s crash<\/a>, the 26,350\u201326,400 zone provided an immediate reaction, but my tradeCompass framework demands sustained trading above 27,200 to validate a constructive bullish continuation, otherwise, slipping below 26,850 risks reopening downside exposure. <\/p>\n

This fragile stabilization comes as regional bourses absorb heavy selling, detailed in the investingLive Asia-Pacific news wrap on global tech rout growth concerns<\/a>, where heavy pressure on chip and data-center supply chains spilled across Asian equity sessions.<\/p>\n

Macro and geopolitical crosscurrents continue to dictate intraday positioning, with Adam Button at investingLive.com noting that the market is waiting for critical policy signals from Donald Trump<\/a> regarding post-midterm tariff strategy and Middle East tensions, leaving risk assets caught between relief rallies and supply-side uncertainties. <\/p>\n

Traders now turn their focus to high-impact economic catalysts to close out the week; as Giuseppe Dellamotta outlined when previewing the main economic events on today’s calendar<\/a>, session volatility is poised to spike with the release of the U.S. non-farm payrolls (NFP) report, Canadian employment data, and the preliminary University of Michigan consumer sentiment survey.<\/p>\n

Educational market analysis only. Not a recommendation to buy or sell. Trade at your own risk.<\/p>\n

This article was written by Itai Levitan at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Gold and other precious metals are showing signs of a potentially significant bullish reversal. But not every investor wants to trade physical gold, futures or other metal-linked instruments. One stock worth watching…<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-441708","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/441708","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=441708"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/441708\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=441708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=441708"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=441708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}