GDX Support at 21
Updated
GDX has had support at around the $21 level since the beginning of 2017. Each time GDX has hit $21, the stochastic has hit oversold. Buying at that point, and holding until stochastic > 50 (or even stochastic overbought) would have brought decent profits.
Well, GDX has hit support at $21 again, and stochastic is oversold. There's several ways to play this one.
Can buy GDX ETF straight-up. Or if you wish to add more risk, buy NUGT which is 3X the GDX return. Or do a combination of both. Depends on your risk profile.
Personally, I did 50-50 GDX-NUGT.
Now remember that in 2017 fed interest rates were holding steady. Now we are in an increasing interest rate environment, which generally bodes negatively for gold.
I've got a stop on GDX to 20.25 (3 or 4%), that's about 10-12% on NUGT. NUGT is currently at $20, Stop at $18.
Upside target = GDX $22 (~5%), NUGT (~15%)
Good luck out there!
Well, GDX has hit support at $21 again, and stochastic is oversold. There's several ways to play this one.
Can buy GDX ETF straight-up. Or if you wish to add more risk, buy NUGT which is 3X the GDX return. Or do a combination of both. Depends on your risk profile.
Personally, I did 50-50 GDX-NUGT.
Now remember that in 2017 fed interest rates were holding steady. Now we are in an increasing interest rate environment, which generally bodes negatively for gold.
I've got a stop on GDX to 20.25 (3 or 4%), that's about 10-12% on NUGT. NUGT is currently at $20, Stop at $18.
Upside target = GDX $22 (~5%), NUGT (~15%)
Good luck out there!
Trade closed manually
I don't like the price action here at all. I closed this trade pre-maturely. $1 loss on NUGT + about $0.40 loss on GDX.There's better things to invest in with this market. I'll take my lumps and move on. The last thing my portfolio needs is a prolonged draw-down.
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