With Gold Perking Up, These Miners Look Of Interest

Matt Simpson, CFTe, MSTA CityIndex

With gold eyeing 1500 (and possibly beyond) as we head into 2020, here are some gold mining stocks with display promising technicals.

Newmont Mining (NEM): Trading just cents below the 2018 high, we’re watching Newmont closely for a bullish breakout. Price action since the 36 low in November has produced a clean, bullish trend with minor pullbacks. The moving average are in bullish sequence and fanning out, which shows increasing momentum across multiple timeframes, and the 10-day eMA is now acting as support.

Bias remains bullish above 40.31 and for a run towards the 46 high.
A break above 42 brings the 26 high into focus, It would be nice to see 42 then turned into support, but not necessarily a requirement as we remain bullish above the 40.31 low.

Royal Gold (RGLD): We may well have seen the end of the correction in November, where an elongated bullish engulfing candle sprang higher from the 200-day eMA. It’s also worth noting that yesterday’s bullish close invalidated a bearish trendline on above-average volume to show bulls are taking back control. That it occurred after consolidating above 113 suggests a higher low could be in place.

Near-term bias remains bullish above 113.13
A break above 120.66 confirms a change in trend, and suggests it could be headed for new highs in 2020

Wheaton Precious Metals (WPM): It’s safe to say that the bullish wedge highlighted earlier this year simply did not work out as hoped. Neither did it fail as such, but it really should have hit target by now to call it a success. Still, it is producing higher lows into resistance around 28.60 and could be on the verge of a bullish breakout.

Bias is bullish above 27
A break above 28.64 / 29.00 assumes a run for the highs at 30.90
A breakout and close back below resistance warns of a bull-trap

Author

Matt Simpson, CFTe, MSTA

CityIndex

Matt Simpson is a certified technical analyst who combines charts and fundamentals to generate trading themes.

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