NEM Daily Chart Rising Wedge Overbot Negative Divergence
We watched the lower lows and lower highs late last year into this year. Newmont is the largest gold producer in the world. Mid-March marked the low as the positive divergence shown by the green lines bounced it from the bottom. Note how the higher high occurred in April and at that point the trend channel of lower lows and lower highs was officially busted.
Fast forward to now. As traders keep looking for perceived safe havens, NEM has exploded to the upside, from 53 to 66 in one month. But all is not well. Look at the red rising wedge, overbot conditions (RSI and stochastics) and negative divergence (red lines) across the board. Take your profits, this is actually a nice set up for a short now. Price would be expected to collapse from here. The weekly chart is showing that after an intial pull back in the coming days, price will come back up again to match the current highs, say over the next week or two, an M Top will be formed, and that will be the last hurrah with daily and weekly chart indicators all negatively diverged. If the CME announces further gold margin requirement hikes, then that can send her down quickly in sympathy with gold coming down.
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