“Newmont (NEM) is a global gold producer that recently gained a listing on the ASX by taking over Newcrest Mining,” Michael said.
“Naturally, the share price of NEM over time should reflect that of the underlying gold price. “The gold price is still moving higher, and I believe that it can continue to do so based on a lower US dollar and interest rates, along with increased central bank purchases of gold.
“As a result, NEM shares should continue to head higher over time.
“NEM is a stock that has trended well since the February low, despite the recent market volatility, and it looks like it is still worth buying here.
“During its up trending periods, it tends to bounce well off the 20-day moving average. “Therefore, traders looking for a trending stock with good momentum can look to buy NEM on any dips towards the 20-day moving average.
“It is currently doing that now, which makes it a good buy right now.
“Traders can then use the 20-day moving average as their trailing stop,” Michael said.
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