Newmont Mining Corp Still Collateral Damage In The Sell-Off In Gold Futures

Newmont Mining Corp NEM shares have remained under major selling pressure since Benzinga's last update, a casualty of the continued sell-off in gold and silver futures. When will the flood of sell orders recede?

Newmont Mining has failed to lift recently despite being oversold on its daily and weekly charts. This should come as little surprise as the two commodities to which the company's fortunes are most tied –- gold and silver -– are in bear markets and have yet to show any serious signs of life. Newmont, meanwhile, is still trading above its 52-week lows and could, in theory, be trying to build a base off of which it can stage a rally.

Technicians note that if shares can hold above either $22.57 or $20.58, both horizontal lines of support, a move up to one of two Fibonacci retracement lines could occur. Those lines come in at $29.38 and $34.69.

Realistically, gold futures do not have major support anywhere until the $1183 level, which is the December 2013 low. At $1223, that leaves gold a still uncomfortable amount of room to fall before support is tested. Silver is even worse, with support down below $17 and current prices at around $17.80.

Newmont Mining traded recently at $23.90, up 1 percent Tuesday.