NUGT (3x long gold miners ETF) has hit & exceeded the first price target today with GDX (1x gold miners ETF) crossing the 14.76 level, providing a gain of roughly 25% in less than two full trading sessions. I’ve noticed both GLD & SLV moving lower today after peaking about 30 minutes after the open today (10am EST). Should the precious metals continue much lower, that would likely put a damper on the GDX/NUGT rally. Despite any near-term overbought pullbacks, T2 remains the final near-term target at this time, once again with the possibility that additional targets may be added to the NUGT/GDX trade, should the charts continue to look constructive.
Should the miners reverse before reaching the second target (any print of 15.22 on GDX), my best guess would be that the pullback is contained anywhere from around the Sept 18th reaction high of 14.71 down to Friday’s high of 14.50, maybe slightly below, as that would provide for a backfill of today’s gap & help to alleviate the near-term overbought conditions.
GDX 60 min Oct 5th