The pattern many traders believe a was just a flag what we tested back on the 21st of February.
Yesterday we had a big on the 4hrs chart in the last candle. Bears tried to take control of the gold market. After the FED minutes price reversed immediately and we were back to the highs.
The first daily cycle rallied nearly 100$ from 1122$ to 1219$ and the 2nd daily cycle started its rally from 1180$. The minimum what the 2nd daily cycle will rally is 100 $ - most probably it will be more - as the 2nd daily cycle is always printing at least the same bounce as the first daily cycle. As we were consolidating in a flag for nearly a month the breakout will be violent and even 1300 $ is not out of the table.
It's a LONG UPDATE idea as we are long from the first DCL (1180-90) but as I think it will be a great breakout and rally one can enter a long position here with a stop below 1215.
Try to ignore the top callers.
The bull might become very aggressive.
A good breakout volume.
We might test back the breakout at 1244 in the European night before going higher.
Might or might not happen the testback.
Trapped bears will be buying every little dip.
If someone is holding a horrible position this is the time to ease on the position a bit and put some money into the miners at the open or try to buy back a bit later if we have a pullback.
I'm playing with 10% of the position.
We will tag at least 1280 in the next few days. The daily chart is still far from parabolic.
You have almost zero chance to make money now.
We were too overbought so they hit it down while banks are buying gold miners at low prices before the rally.
Bears will be fleeced again as they release gold again.
Guys we broke out of a monthly consolidation.
It's not a 1 day rally... I'M buying back my 10% here and adding.
Banks are buying
Banks are buying
RSI is turning up again and wannabe overbought..
Fighting with the 200 SMA.
Gold at new highs and miners are down.
Somebody is lying
We took profits on half of the position in PI.
As the big picture is messed up I'm going to take profit today at 1248.50 on the 25% of the original position.
I will have only the 25% of the original position with a stop below today's low.
If we break below today's low I'm out of this trade.
You can ride the 100-75-50% of the original position with a stop below today's low. You decide how much you want to risk.
Waiting for a new long entry
And like many peope i was also caught offguard but i did not sell my position in JNUG not my core position in GDXJ....i was waiting until the end of session and started heavily adding 7.40 in JNUG..why?? Because from my previous bad experiences with junior miners i learned one thing: banks and hedge funds love them due to their volatility and massive upside potential comparing to GLD a favourite alternative vehicle for larger institutional entities..i dont know if banks are happy with their monday "bear raid" and would start slowly pushing miners to upside in comings weeks ..but one thing for certain: if price stays above 1242-45 level this week..junior miners would start moving to the upside very quickly..
Patience is our best friend at the moment..the rest is noise...
We made 200$ on this bull run. And took profit on the positions already in the private idea.
But I still say to my followers: no shorts.
Good luck ( you will need it)