This Serial Underperformer May Be Ready To Rip

Published 05/14/2015, 03:14 PM
Updated 07/09/2023, 06:31 AM
NEM
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U.S.-based gold producer Newmont Mining Corporation (NYSE:NEM) has been a serial underperformer in recent years with shares falling more than 70% from its late-2011 all-time high to its December 2014 low. However, things may be on the verge of turning around for Newmont investors.

The stock has carved out a very clear and broad-based head-&-shoulders bottom during the last year.

Newmont Mining

A breakout above the $27.50 resistance level should target the open gap from April 2013 up at $35.04. What’s even more interesting about the recent strength in NEM is that sell-side analysts remain fairly neutral on the name with the majority of price targets remaining between $26-$30/share. This sell-side ‘pessimism’ is actually a bullish phenomenon given that a chart breakout will likely result in a series of late upgrades that should serve to further catalyze the rally.

Via Energy and Gold.com

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