Direxion Daily Gold Miners Index Bull 2XSharesArca
Description
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After climbing up near the measured move target price based on the pennant breakout, NUGT went into the expected consolidation, filling the gap in the process. Now that this consolidation appears to be complete, I am looking for NUGT to climb up to the 200MA in the $57/$58 area. Could take a while but getting to that level would indicate that what to some may look like a long overdue bounce is actually the beginning of a longer term bullish move. IMHO, of course.
GL
Comments
Will_Wong
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When it hit $58, it might retrace to about $40 to form the right shoulder of an inverted HnS pattern. That might be the time to back up the truck.
CurtisM
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Will, that's interesting. I'll be on the lookout for that.
GL
Will_Wong
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I think the neckline was painted at around $53 (hoping for $56~58) and it could drop to around $40 for the right shoulder of the iHnS pattern. What do you think?
CurtisM
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Will, to be honest, I hadn't really noticed that before. When you mentioned the inverted H&S the other day, it went right over my head. Now I'm looking at it and seems to me that there is a sloping neckline from 59 on the left side to the recent peak around 53. It also seems to me that a logical stopping point in this pull back might be the 20MA around 44. A failure there would not be good, IMHO.
On the 60min chart, the 13EMA has crossed down through the 34EMA and that is a 'sell' signal. At the same time, I do have positive divergence of the RSI in the 60min time frame which should, in a perfect world, stall the current decline with the potential of putting in a bottom right here around 47. Also in the 60min time frame, the 200EMA continues to rise and is now at 43 so should NUGT continue south from here, then the 20MA on the daily and the 200EMA on the 60min should offer some support. If neither of these holds, then NUGT could easily drop to 40 and below.