Hello everyone, this week's “Technical Tracking” to analyze the world's largest gold producer - Newman Mining ($Newman Mining (NEM.US) $
Hot Spot Events
On July 16, 2024, under the impetus of multiple benefits, the price of gold surged by nearly 2%, reaching a record high!
The sudden strengthening of gold not only broke the previous three-month high fluctuation consolidation trend, but also triggered market speculation that gold prices would rise further. The main reason behind this is that a series of recent US economic data has strengthened the Fed's confidence in controlling inflation, causing the market to speculate on interest rate cuts.
According to CME data, as of July 17, the probability that the market is betting that the Fed will cut interest rates in September is over 93%. This is an almost unsuspecting forecast of interest rate cuts. A month ago, the probability of betting on a September rate cut was less than 60%.
Interest rate cuts usually benefit low-interest or zero-interest assets, and gold and gold concept stocks are obvious beneficiaries. As the world's largest gold producer, Newman Mining's performance in this round of rising gold prices is impressive. Newman Mining's stock price rose 18% in the past month, far exceeding the 3% increase in the S&P 500 index over the same period.
Newman Mining's main competitors include Barrick Gold (GOLD) and Eagle Mining (AEM). Compared to its competitors, Newman Mining has stronger gold reserves. According to the data, Barrick Gold's gold reserves are 77 million ounces, and Eagle Mining's is 53.8 million ounces. Together, the two are equivalent to Newman Mining's gold reserves. In the long run, this could mean Newman Mining has more potential for growth.
Technical analysis
Trend analysis:
The weekly chart shows that in the past two years, Newman Mining's stock price has gone through a long process of decline, mainly due to the company's performance falling into loss. Although gold prices have repeatedly broken through record highs during this period, Newman Mining is far from recovering.
Judging from the daily chart, there are some positive signs. Since hitting a four-year low of $29 at the end of February, Newman Mining's stock price has rebounded by more than 60% so far, breaking the rectangular consolidation range that had been maintained for more than two months, indicating that there may be room for a new round of growth.
Interpretation of indicators:
● Newman Mining's stock price clearly deviates from major moving averages, such as the 20-day EMA and the 50-day EMA, highlighting the extremely strong short-term trend.
● Although the stock price has broken through the rectangular range, it has not been accompanied by a significant increase in trading volume. On the contrary, the overall volume has remained unchanged recently, which suggests that buying is relatively moderate.
● The RSI indicator and KDJ index have been in the oversold region for many consecutive days, which indicates that the stock price is facing potential adjustments in the short term.
● The K-line chart showed a “shooting star” pattern on the most recent trading day, which also suggests a weakening in buying. $NVIDIA(NVDA.US$ $Tesla(TSLA.US$ $Advanced Micro Devices(AMD.US$
On July 16, 2024, under the impetus of multiple benefits, the price of gold surged by nearly 2%, reaching a record high!
The sudden strengthening of gold not only broke the previous three-month high fluctuation consolidation trend, but also triggered market speculation that gold prices would rise further. The main reason behind this is that a series of recent US economic data has strengthened the Fed's confidence in controlling inflation, causing the market to speculate on interest rate cuts.
According to CME data, as of July 17, the probability that the market is betting that the Fed will cut interest rates in September is over 93%. This is an almost unsuspecting forecast of interest rate cuts. A month ago, the probability of betting on a September rate cut was less than 60%.
Interest rate cuts usually benefit low-interest or zero-interest assets, and gold and gold concept stocks are obvious beneficiaries. As the world's largest gold producer, Newman Mining's performance in this round of rising gold prices is impressive. Newman Mining's stock price rose 18% in the past month, far exceeding the 3% increase in the S&P 500 index over the same period.
Newman Mining's main competitors include Barrick Gold (GOLD) and Eagle Mining (AEM). Compared to its competitors, Newman Mining has stronger gold reserves. According to the data, Barrick Gold's gold reserves are 77 million ounces, and Eagle Mining's is 53.8 million ounces. Together, the two are equivalent to Newman Mining's gold reserves. In the long run, this could mean Newman Mining has more potential for growth.
Technical analysis
Trend analysis:
The weekly chart shows that in the past two years, Newman Mining's stock price has gone through a long process of decline, mainly due to the company's performance falling into loss. Although gold prices have repeatedly broken through record highs during this period, Newman Mining is far from recovering.
Judging from the daily chart, there are some positive signs. Since hitting a four-year low of $29 at the end of February, Newman Mining's stock price has rebounded by more than 60% so far, breaking the rectangular consolidation range that had been maintained for more than two months, indicating that there may be room for a new round of growth.
Interpretation of indicators:
● Newman Mining's stock price clearly deviates from major moving averages, such as the 20-day EMA and the 50-day EMA, highlighting the extremely strong short-term trend.
● Although the stock price has broken through the rectangular range, it has not been accompanied by a significant increase in trading volume. On the contrary, the overall volume has remained unchanged recently, which suggests that buying is relatively moderate.
● The RSI indicator and KDJ index have been in the oversold region for many consecutive days, which indicates that the stock price is facing potential adjustments in the short term.
● The K-line chart showed a “shooting star” pattern on the most recent trading day, which also suggests a weakening in buying. $NVIDIA(NVDA.US$ $Tesla(TSLA.US$ $Advanced Micro Devices(AMD.US$
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