GOLD did break out... on the downside from that post I linked to...
However, I know it is very short term, but I think we had a reversal today in the GOLD market.
The past few days, while GOLD was being pummeled. Goldie stocks, such as the many Canadian Stocks that I follow, did not necessarily follow the direction of the yellow shiny metal. Which in my mind equates as a positive divergence.
The trading since 2:00 pm today, (May 30), was very interesting, it could be in relation to technical trading issues such as exhaustion on the weekly, daily or hourly charts, or it could be because of other factors, such as significant resistance at ~ $30.00 (DUST). For now, I'm assuming that technical factors came into play.
IF the reversal holds, then it might be appropriate to tentatively move some money into yellow metal. For aggressive traders (such as me).
Two charts - first one DUST 3x inverse leverage was repelled not only by it's 200 day sma, but the nasty hanging man also came into play yesterday (our first clue for bulls that something was up), todays candle was a negative black crow, if it is followed by two more black crows, then bulls could bolster their argument that change is in the air.
GDX had a bullish hammer on the weekly chart & the daily chart (not shown). Suggesting that change is in the air.
low risk trade with stop set @ $20.00 (for GDX).
For info purposes, next week I will be playing either JNUG or NUGT - or maybe a warrant - depends on how I feel.
Regards,
Davy |
