Possible Reversal from Trendline
Updated
May retrace to Mid-High $5's. Possible end to 4th Wave in Corrective Structure of B Wave of A-B-C Pattern starting from Dec. 2015 Low. The move down to the $5's would complete the 5th Wave of the B Pattern, setting up a massive rebound C wave.
Comment
The lowest low actually took place in Jan. 2016 (not Dec. 2015) starting the A wave.Comment
--->Two times the PPO tested 0 other than now: July '14 and March '16. Jun/July '14 rally faded quickly after and PPO turned back negative (Part of 2nd wave of Corrective 12345). March '16, we all know what ensued in the subsequent months, though part of the A wave. If we are truly ending the 4th wave of B, and starting the 5th wave, we should go down from here or soon after and go below 6.13/share. The other possibility is if the downtrend structure is 3-3-5, then the Bottom of the B wave took place Nov 12, 2018, going below the low of Jan. 2016 (however, not too far beneath), meaning that if we reverse here in Feb., JNUG could be in the second wave in a 12345 bullish impulse wave structure. Therefore, in that scenario, the 1st wave of C would have already started in Nov. 2018 and the 2 wave should retrace similar to Jan. 2016 low ($8-9/share). If that is the case the rebound (3rd wave) from there could be INTENSE.
Comment
*-"JNUG could be ENTERING in the second wave in a 12345 bullish..."Comment
So far, it's holding- looking like the other possibility that I mentioned about being in the C wave. We will see in the coming weeks if it breaks up above trend line or down, which should confirm the trend of the larger wave.Comment
What worries me about going long is that the monthly stoch. rsi is overcooked,and the weekly is trending negative. I'm still leaning towards a sharp decline into bottom (5th wave) B despite the chart holding where it is. May be a bull fakeout. Anticipation is really building, might be safe to stay on the sidelines until it's more clear.
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