Trading Setups: A Quick Trade In Newmont Mining (NEM)

Sometimes a trade works very well. Often they don’t, but sometimes they do.

In this case, it did. Almost perfectly. And the trade was simple. Below is a recap of how my recent trade in Newmont Mining Corp (NEM) went down.

Newmont Mining (NEM) Trade Review

Trading should never be complicated. Complicated trading strategies don’t make it easier to make money, I can promise you that.

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Here’s a quick review of my recent trade in Newmont Mining Corp (NEM) – a simple setup and process:

  • Up a lot on the day
  • Above the upper BB (overbought)
  • Weak intraday; broke 21 ema (5-min)
  • Held below 21 ema
  • Within a compressed consolidation (price contraction, indicated by BBs)
  • Therefore, short initiated
  • Stop above the high of the day
  • Target VWAP

This is the set-up, it’s the same trade every time and works across time frames. It’s just a matter of when it shows up. Below is an annotated stock chart of Newmont Mining that provides color for the above bullet points.

The first arrow represents the spot in which the short was initiated, the second was the spot in which the position was covered. It was covered there because that’s where the VWAP laid; it was a good target. Often times these overbought short trades don’t come down alot so we wanted to get in and get out quick.

This pattern is also called The Coghill Flag.

Newmont Mining Intraday Stock Chart

newmont mining nem intraday trading stock chart december 4

Thanks for reading.


Twitter:  @BenCBanks

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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.