Clicky

Archives

March 2017
MTWTFSS
« Feb  
 12345
6789101112
13141516171819
20212223242526
2728293031 

GDX Symmetrical Triangle Pattern, Revising DUST Stops

I am revising the stops on the official DUST swing trade to any move below 12.06 with an optional, more aggressive stop below 12.60. This would help to assure a gain of 2.2% (on the 12.05 stop) or 6.7% (on the 12.59 stop) & with gains well over 60% on both NUGT & DUST so far this month on all the unofficial micro-managed trades that were posted here and/or in the Trading Room.

DUST 10 min 2 Oct 23rd

DUST 10 min 2 Oct 23rd

 

My concern isn't so much that usually large rip & reversal shortly before & after the opening bell today, more so my current read on the charts of gold, silver, GDX and the US Dollar. DUST will continue to remain an Active Short Trade until/unless the 16.30 price target is hit or DUST trades below 12.60 (any print of 12.59). As with all symmetrical triangle patterns, these triangles on GDX & DUST can break either way & the direction in which they break is likely to determine the next major leg up or down in the miners.

As I have been intermediate & cautiously longer-term bullish on gold & the mining sector for a while, that tilts me in favor of an upside resolution of this pattern on GDX although to go long now or sell the DUST long (3x miner short), while we are testing the top of the pattern (i.e.- resistance) would be anything BUT objective. Maybe one more thrust down within the pattern? Maybe a downside break? Just too early to tell but from where price are in relation to the apex of the triangle, we should know very soon.

GDX 60 min Oct 23rd

GDX 60 min Oct 23rd

Oct 23, 2015 12:28pm|Categories: Completed Trades - Short, Gold & Commodities|Tags: , |4 Comments

4 Comments

  1. Profile gravatar of portobellovcs3
    portobellovcs3 October 23, 2015 12:43 pm at 12:43 pm

    The issue I have with going long GDX on a breakout is that gold is in a clear bear channel on the daily chart (sorry can’t post charts at work). I would like to see a move down to the bottom of the channel on the /GC chart before I consider an entry in the miners.

    0
    • Profile gravatar of rsotc
      rsotc October 23, 2015 1:13 pm at 1:13 pm

      I wouldn’t mind see that bear channel if you get a chance to post the chart later today or over the weekend. Not sure if you saw it but I did a comprehensive overview of the precious metals & mining sector in this video on Oct 1st, making an intermediate-term bullish case as well as the potential for a longer-term bullish case (still some technical work to be done there). http://rightsideofthechart.com/precious-metals-mining-sector-outlook-video/ I’m also going to post my daily chart of GLD in a new thread above (so the image will show without having to click a link). Still working on the functionality to upload images to comments & replies within the Trading Room.

      0
  2. Profile gravatar of pzz
    pzz October 24, 2015 1:42 pm at 1:42 pm

    Just wondering, does that mean this trade is now closed? It dipped below 12.06 intraday. Or do the stops refer to market close prices?

    0
    • Profile gravatar of rsotc
      rsotc October 26, 2015 11:38 am at 11:38 am

      Yes, DUST is now closed as it traded below 12.06 on Friday after that post. Unless specifically stated otherwise, the suggested stops are triggered on any intraday move. At times I will specific that the stop is based on daily, weekly or even something like a 60-minute candlestick close. The NUGT trade is now officially completed & I will remove it from the Active Trades category along with a few others as soon as I get a chance.

      0

Comments are closed.