Trade Level For Leading Gold Mining Stock
Nicholas Santiago | Jan 18, 2019 12:30AM ET
Earlier this week, leading gold miner, Newmont Mining Corp (NYSE:NEM) acquired Goldcorp Inc (NYSE:GG) for $10 billion in stock. The news caused NEM stock to decline by roughly 6.0 percent. Often, the company that acquires another business will often see its share price decline. Today, NEM stock is trading around the $31.42 level. Traders should note that the stock is now below its key 50-day moving average which puts it in a weak technical chart position. It is also trading below its important 200-week moving average which should add further pressure on the stock in the near term. The next key support level for NEM stock will be around the $26.50 area. This is a level where the stock broke out in April 2016. Remember, stocks are often defended on a retest of their prior break-out levels.
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