Newmont Mining Corporation (NEM) is a leading global gold producer with operations in North and South America, Africa, Australia, and Asia. Recent Elliott Wave analysis shows strong bullish momentum for its stock. The monthly Elliott Wave chart for Newmont illustrates a strong bullish wave, indicating a potential breakout to a new all-time high. From a historical low of $12.75 in 2000, the stock reached wave (I) at $62.72 before pulling back to $15.39. Currently, wave (III) is underway, with wave I peaking at $86.37 and wave II retracted to $29.42. The rally is expected to continue as long as the price stays above $15.39.

Wave Progression

On the daily chart, the correction of wave II ended at $29.03, setting the stage for upward wave III. The first jump of wave (1) hit $58.72, followed by a dip in wave (2) to $36.86. As long as the stock remains above $29.03, it is ready for continued growth in wave III. In other news, recent market updates include Canadian inflation, a potential US government shutdown, and trade concerns. The article stresses the need for thorough research before making investment choices and clarifies that this content is not investment advice. Newmont Mining (NEM) is showing a strong bullish trend, and technical analysis suggests the stock is gearing up for a breakout to new highs. This trend is supported by recent economic conditions, highlighted by the Bureau of Labor Statistics reporting inflation at 3.9%, which is higher than expected. Ongoing inflation is leading to increased investment in hard assets like gold. In the upcoming weeks, we should consider buying call options to capitalize on this upward momentum. A key level to monitor is the support at $29.03; as long as the stock remains above this, the bullish outlook stays intact. We can look at options expiring in December 2025 or January 2026 to allow enough time for this trade to develop.

Favorable Environment

The current environment for gold is becoming increasingly favorable, benefiting major producers like Newmont. Spot gold is trading above $2,200 an ounce, a level not reached since early 2024. This comes as the US Dollar Index weakens following recent dovish comments from the Federal Reserve about monetary policy. This macro backdrop supports a potential rally in mining stocks. A defined-risk strategy, such as a bull call spread, might be a smart way to invest while managing costs. We can use the recent low of $36.86 to help structure these trades, as this level is expected to hold. Technical patterns suggest we are in the early stages of a major third-wave advance, which tends to be very strong. Looking back, a similar situation occurred between 2018 and 2020 when concerns over trade and economic growth raised gold prices, leading to a significant rally in NEM’s stock. The current nested impulse formation appears even more favorable than in the past. The chart indicates that as long as the price stays above the long-term support of $15.39, the overall trend remains strongly upward. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now