Score 8.3 (out of 10): NEWMONT (Gold) sets up for +8.2% rally in 2 months

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What’s Going On Here?

Gold prices appear to build a sold bottom around the 1,800 ounce level as inflation seems to be a concern. Top gold producers, such as NEWMONT could benefit. ‘Wall Street’ will likely raise their target prices for the shares.

Why Now?

NEWMONT CORP has triggered a new high volatility signal (1 month). During similar occasions, NEWMONT CORP shares had a median return of +8.2%, over the following 2 months – based on 10 historical occasions with 9 of those showing positive returns (90%). This buy signal for NEWMONT CORP received a high score of 8.3 (out of 10). This insight was generated on 2022-February-16 with last price of 64.28.

What’s This Company About?

NEWMONT CORP is in the Gold Mining business. Based on the last 2 years’ risk/return profile, this asset is seen as Very Risky. ‘Wall Street’ analysts think the stock price will be worth +3% (average). Ticker symbol: NEM US.

What’s My Risk / Reward and Time Horizon?

We found 2 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 69.56 (+8.2%) has been reached. Based on NEWMONT CORP’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 61.78 (last price at 64.28), which is equivalent to a -3.9% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

8.9% (December-2021), 34% (February-2020), 4.3% (January-2019), 4.8% (November-2018), 7.5% (September-2018), 6.1% (February-2018), 29.2% (May-2016), 11.2% (February-2016), 40.5% (December-2015), -0.1% (October-2015).

Historical Chart:

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Summary:

NameNEWMONT CORP
ViewUp
Star (1 to 10)8.3
Target+8.2%
Time2 months
Hist Rate90%

Popular Insights:

INFOSYS has denied that the company is launching a crypto project. But the company continues to expand aggressively in Costa Rico. ‘Wall Street’ analysts’ think the shares will rally +22% over the next 12 months.

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