Direxion Daily Gold Miners Index Bull 2XSharesArca
Description
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Former uptrend support moving average for NUGT should function as current downtrend resistance. The next leg of the downtrend should extend significantly below the 2016 low. IMHO, a reverse split will be required. XAUUSD is also facing technical resistance. All of this should be good news for DUST.
Comment
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Updated value of target resistance moving average in question to MA987 on 39 minute chart.
Comment
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In the downtrend that began in July of 2016 XAUUSD has retraced 38 percent. The downtrend should resume as should the downtrend for NUGT.
Isn't a five wave downtrend normally followed by an uptrend? Also, since the downtrend is broken, does not that indicate an uptrend has begun?
QuitMyJob
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@leonardcohen, in a word, the answer is yes. The move since December 20th is the uptrend. However, the Dec 20th uptrend is just a "corrective wave" fractal within the August 2016 downtrend wave count (think 5-3-5). Five wave counts are followed by either corrective waves contained within the 5 count or trend reversals that overwhelm the 5 count. I believe this recent uptrend is a corrective wave and that the downtrend will continue and extend below the false bottom placed a year ago. Energy and metals experienced a Santa Claus rally. Well, this week, the tree comes down! Rise you mighty US dollar!