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Swing Trade Idea (NEM) – September 26, 2023

Our bearish trade for Tuesday, September 26st is Newmont Corp (NEM). NEM is part of the Materials Sector, which has performed at -1.95% over the last month, with NEM performing at 3.84% over the same period.

NEM made a higher low in a downtrend channel, from where it is trading lower. As it is currently overperforming relative to its sector, we believe that NEM can follow suit and pull back to lower levels. The next area of support is at around $38 and then $36.

As a close, if NEM were to trade above $41.50 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $1.80 Debit.