Where NUGT May Bottom
|Gold and The Gold Miners go down just about every day, but not yet every minute of every day. For the past year, my thesis on the Miners has been-- and continues to be-- that The Street would come for them as the bull market matures, eventual sector rotation into "cheaper," under-owned names from expensive ones, and as domestic and geo-politics deteriorated into nastiness.
Certainly, those conditions or requisites are more prevalent now than they were 8, or 10, or 12 months ago. Of course, all we hear about is Bitcoin, which is sucking the air out of the room, and sucking capital out of the precious metals.
Be that as it may, the enclosed four hour chart of NUGT shows the decline off of the 9/07 rally high at 44.03 is nearing its exact three month mark tomorrow, and has pressed NUGT to a low of 25.03, or a relentless 44% "haircut." Let's notice that the price structure is pointing to a next downside target zone of 23.80 to 23.00 (with downside overshoot to 22), which represents the next area from where I will be expecting new buying interest that precipitates a vicious upside reversal that initiates a powerful recovery (short covering) rally.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.