Friday, February 20, 2009

Cup & Handle - Newmont Mining Corporation (Public, NYSE:NEM)

NEM gapped up on the open as did most gold stocks with gold futures closing in on the psychologically significant $1000.00 level. NEM carved out a cup & handle with a NRIB (narrow range inside bar) (NR7) as the trigger bar at the base of the handle. On a measured move basis, the C&H pattern should extend 100%. Place the Fibonacci lines from the low of the cup to the base of the handle.

I exited half at the 1/2 $ level as price approached full extension and exit the balance as price moved into the whole $ level.

The attributes of the pattern as outlined below on the lower timeframe. Volume contraction should accompany price contraction as the handle forms. This leads to expansion.

Related post : Cup & Handle VMW

Also check out Anarco's AEM trade

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