Newmont Mining NEM base building pattern

The chart is showing us that NEM has tried to base a number of times and all have failed. Each time there was a different pattern. This time we have a nice head&shoulders bottom formation.

I have noted key levels with the blue rays across the chart emanating from the price points that I think are important.

The risk-reward ratio here seems solid given the recent pullback. NEM fell back yesterday on a tad less volume and the last 3 up days have higher volume than the last 3 down days. So, some new buyers are coming in here and pushing up the price.

Let's see how this pans out.

Cheers.

Tim 12:19PM EST, Tuesday, Jan 28, 2014