Hit and Run Morning Stock Report: July 26th, 2022

NEM Selling Climax

By: Jeff Cooper

1)      NEM topped at 86.38 on 4/18/22

2)  360 degrees down is 53. Another 90-degree decrement lower is 46. A total of 540 degrees lower (a cube) is 40/41.

3)  44 is 180 degrees straight across and opposite July 25th, yesterday. NEM spiked to 44 on Monday for a possible Time/Price square-out.

4)  90 days/degrees from 4/18 is 7/18. We are in the Wheel House.

As well, the volume in NEM exploded on the spike down for a possible Spike Volume Bottom (SVT).

In sum, we have several factors pointing to a washout. A Selling Climax would be confirmed on trade back above the horizontal green line.

My take is NEM may…may…bounce from here and then undercut it and drop to 40/41 THREE points lower for an undercut low.

However, it could go straight to 40/41 as well…assuming that is its agenda.

Be that as it may the Rule of 3 is on the table with 3 straight waterfall weeks in play.