Trade Journal: Long $NUGT - 4/22/2020Gold has been consolidating right above the recent highs, since bottoming out last month, and looks prime for a breakout. I went long this morning right at the open on the gap up. Really like this pattern occurring in GOLD which could pick up some momentum near term. GDX is also a valid play for less risk.
Entry - 12.10
Stop loss - 10.90
Target - 14/17.50
NUGT trade ideas
Two target price ranges in $NUGT based on $GDX resistance levelsOverhead resistance for GDX is to be found at $35.50 and $39
Assuming that GDX reaches these levels over the next 2 to 4 weeks $NUGT could reach $53.50 and $64.80 respectively.
GDX will open above $31 to $31.79 resistance which puts $NUGT at $42.0 to $42.70
Daily RSI will indicate a hold long.
$NUGT and Gold with Seasonality ( $NEM, $GOLD $FNV)Looking at the breakdown of the top 3 holdings $NEM $GOLD $FNV and the rounded bottom here on NUGT we might have a nice move to the upside with the seasonality of the gold sector and the Gold futures hitting breakout highs. We will see if we hold the highs this week on the Gold Futures
NUGT - Miners Rising!NUGT has traded to the top of the uptrend channel on a very strong day for gold. I'm not going to get too excited yet but this is starting to look like a change in character. Miners sold off for three months and have been working on a base over the last month. Hang on this is going to be one heck of a ride! 2020 the year if the metals!
Miners rounding bottom?The gold miners' ETF is testing its downward trend line again today, and may be in the process of making a rounding bottom. Buy low in the crescent or watch for a bullish trend line break. Gold has been showing some strength due to Fed policies and dollar weakness. It could break out upward on news of either significant market weakness or a breakdown in the US dollar.
Target for $NUGT at different $gold spot prices $GDX $NUGT $JNUGThe ascending triangle in the gold price displayed here:
Has produced the consolidation wedge displayed in the green triangle pattern above in $NUGT.
A return to the recent highs will likely send $NUGT back into the $36 to $38 range.
Gold is, momentarily, no longer inversely correlated with the stock market. Negative real interest rates globally and the inverse correlation with USD is now the primary driving force in the price of gold.
Lower interest rates and (not QE ) QE are repricing the US dollar against major world currencies and gold:
NUGT - looks coiled and ready to go!Tested smaller FIBs yesterday morning and today. Larger FIB holding. MACD and RSI looking promising. I think gold and miners ready for a little rally. Fed decision and probable future language regarding wait and see on further cuts already baked in. There will be some volatility but my bias is up for now.
NUGT - up or down?Sitting at its 200 day line and an important breakout area. I see this going higher. AAPL analysts raising targets to $280, market at all time highs, and a belief that the Fed may stop easing because all is well, just seems too good to be true in light of all the issues cropping up in other areas. Brexit and China "deals'" saved the market once again. Both NUGT and GDX are working on an 8 week downtrend line. Everybody wants the breakout on gold at $1365 to be the test area. Miners at an inflection point. Which way do we go?