Potential Bottom or A Potential Setup for Another Smackdown?
Judging from the daily chart, $10.00 is the breakout point and a price rise above that level would suggest a bottom is in. However on the weekly, the 10 EMA is where the options manipulators come in and jam down the price and at about $10.50 is where that could incur. The past most recent occurrences of the breakdown on the Weekly (at the 10 EMA) happened on the weeks of 1/13, 3/18, and 6/13.
At about mid cycle, of these approximate 2 month sell off points, the 5 EMA weekly served as resistance. We are now 1 month after the recent June smack down and also at the 5 EMA on the weekly and $8.03 being support at the weekly bollinger band bottom.
I would like to get long the miners but until this pattern is broken, I'll be sitting on the sidelines.
After reviewing weekly historical chart data and looking at the seasonal for gold, the 2nd half of July - January tends to bode well for gold. So I'm going to do a 180 degree flip-flop from my prior post. With that said I took a position today in NUGT. Would have bought back into AUY buy I wanted to avoid the wash sale. Good luck to all.