NUGT Daily 03/19/2014
Out of NUGT and JNUG for now. Gold has had a nice run and I don't think it's over, but gold has clearly come under pressure the last few days.
I will be watching for one or both of two things to happen before I reenter. I want to see the CCI drop below -100. Once that happens I will watch for positive divergence in CCI and/or for CCI to rise back above -100 as a new 'buy' signal. Second, I will be watching the RSI for a drop to or below 30 as a signal that NUGT has become oversold. Should the RSI actually drop below 30, then a new 'buy' signal would come with a rise back above 30.
No idea which of the above two signals will trigger first or at all or if NUGT will find support around 47 and then reverse. Regardless, I don't think the run in gold is over. I just think it is pulling back to a price that will attract more buyers where it will build a base and strength in preparation for the next leg up.
IMHO and subject to change without notice. GL
I will be watching for one or both of two things to happen before I reenter. I want to see the CCI drop below -100. Once that happens I will watch for positive divergence in CCI and/or for CCI to rise back above -100 as a new 'buy' signal. Second, I will be watching the RSI for a drop to or below 30 as a signal that NUGT has become oversold. Should the RSI actually drop below 30, then a new 'buy' signal would come with a rise back above 30.
No idea which of the above two signals will trigger first or at all or if NUGT will find support around 47 and then reverse. Regardless, I don't think the run in gold is over. I just think it is pulling back to a price that will attract more buyers where it will build a base and strength in preparation for the next leg up.
IMHO and subject to change without notice. GL
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