Direxion Daily Junior Gold Miners Index Bull 2X SharesArca
Description
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The blue lines are long-term trend lines, forming a triangle. We'll break out either upward or downward by October 18. Until then, I'll be playing within the triangle. Below the green line is my buy level, with a stop loss below the triangle bottom. Above the red line is my sell level.
Based on technicals, JNUG may fall through the bottom of the triangle to bounce from 56. But based on news, I'm actually expecting an upward breakout. All we need is a headline about another rate cut or about the Fed's balance sheet expansion weakening the dollar, and gold should take off.
Comment
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JNUG opened below the triangle today, so this trade never triggered. I may buy around 54, depending what it looks like the dollar is doing.