Fundamentally Gold should be trending higher. Or maybe a better way of saying it is fiat is trending lower compared to Gold due to its misuse. NEVER underestimate how much gold can move when real fear kicks in. This chart says there is a bit more downside left in the juniors before it bottoms out. In my opinion, nibbling now and backing up the truck when we test...
Reasons for going long is the price is likely to go up, so by going long I am likely to make a profit because I will be able to sell it for more than what I bought it when I close the position that I longed.
Setup is the same in both JNUG and GDXJ ---
Inflation fears and BTC being a crazy eyed old man --
Run to the GOLD play, as leveraged as you can get (unless you like GC, mwhahaha).
Enter Anywhere in that green box with stop just below.
10R worth the 50/50 shot
Trendlines : Downtrend lines in place. Until they break, appears to be headed much lower.
Support/Resistance : $41.93-$43.24 support area broken.
Moving Averages : Below all major MA’s: EMA 9, SMA 20, 50, 100, 200.
Chart looks like death. Bearish unless shorter-term downtrend line breaks. $35 price target.
GDXJ will lead Gold lower.
Double bottom price action on the GDXJ
Price of the double bottom also hitting S/R zone of the previous 4 year base break-out.
Does this indicate a reversal in the last 12 month pull-back and the start of a new break-out?
I'm looking for this support to hold and provide GDXJ with a 15% bump back up to the $51 region.
There's a clear invalidation level just under $43 to provide a tight stop-loss and 5.6 R/R ratio.
This trade could take anywhere from 2-6 weeks to play out. Be patient and let it come to you.
The idea with this trade is simple. Buy at support and Sell at resistance.
The fun side of the arc in the junior miners is currently playing out. At the moment, we reside at the edge of the arc, which presents a very low risk high reward entry. Completion of the arc would indicate a gain of around 250% + overshoot, in an 18 months timeframe.
Not the strongest looking set up because of the dollar strength but a bottoming pattern could be developing. 1750-1760 should hold if this is the pattern. Buy on any dips that do no violate the neckline