Hi Eric: Am I crazy or is NEM tracing out this huge reverse head and shoulders pattern over the past 4 years.I know you’ve been saying gold stocks could move up 4X in the next few years as this chart portends a possible move up to at least 90ish.Does this analysis look correct to you? Once again in advance thanks for all your help!
Daniel
Technically speaking, head and shoulders are not continuation but rather trend-reversal patterns. Newmont Mining (NEM) bottomed in 2000 and its trend reversed in early 2002. Notice how the trend energy made a new high in March 2010. This foreshadowed new highs for this secular bull in July 2010.
The breakout in the gold shares index from the massive, 30-year consolidation will certainly benefit most gold stocks. This includes Newmont Mining.
Newmont Mining:
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