Gold and gold miners like
NEM
rallied over the summer when interest rates crashed. But they’ve staggered since early September and now NEM is showing some potentially bearish signals.
First, NEM wasn’t able to get back above its old highs from early 2018. Second, it’s been consolidating below both its 50- and 100-day simple moving averages. Third, it had a spinning stop candlestick back on Wednesday at those same moving averages. This may keep traders looking for a drop as long as NEM remains below the weekly high of $38.75.
The other potential problem for gold miners is the continued rally in the
SPX
, which is staying above 3,100 today. Any further good news about Chinese trade or the economy could drive more risk appetite, and potentially hurt demand for safe-havens like NEM.
NEM
rallied over the summer when interest rates crashed. But they’ve staggered since early September and now NEM is showing some potentially bearish signals. First, NEM wasn’t able to get back above its old highs from early 2018. Second, it’s been consolidating below both its 50- and 100-day simple moving averages. Third, it had a spinning stop candlestick back on Wednesday at those same moving averages. This may keep traders looking for a drop as long as NEM remains below the weekly high of $38.75.
The other potential problem for gold miners is the continued rally in the
SPX
, which is staying above 3,100 today. Any further good news about Chinese trade or the economy could drive more risk appetite, and potentially hurt demand for safe-havens like NEM.