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GDX NUGT DUST Trade Setup & Entry

Although a bounce up to the 29.60 resistance level is certainly possibly, I suspect this bounce might fall shy & as such, GDX will be added as an official short entry here around the 28.16 level with an objective entry as high as 29.60 and as as low as *26.42 (*only if targeting T2). Suggested stop on a 60-minute close above 30.95.

GDX 4-hour Aug 26th

GDX 4-hour Aug 26th

One could certainly opt to short NUGT (3x bullish gold miners ETF) or go long DUST (3x bearish gold miners ETF) in lieu of a short on GDX. However, to keep things simple & due to the fact that the leverage on DUST & NUGT cause price distortions on the charts, the entry & exit points on a NUGT or DUST trade should be aligned with the entry & exit criteria on GDX. Also make sure to consider adjusting your position size to account for the 3x leverage if opting to trade DUST or NUGT, that is in addition to adjusting your position size down for the above average volatility on the mining stocks in general.

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Aug 26, 2016 10:36am|Categories: Completed Trades - Short, Gold & Commodities|Tags: |2 Comments

2 Comments

  1. Shambo August 26, 2016 12:06 pm at 12:06 pm

    despite my complaining about the markets, rather than closing all my positions I added to the NUGT short off a 10 minute chart, around GDX 28.20

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    • rsotc August 26, 2016 12:41 pm at 12:41 pm

      Nice entry once again Shambo. Seems that you have a nice pulse on the miners lately. So far, GDX fell about 4% since this official short entry (and yours) & looks to be consolidating in a bear-flaggish type pattern when viewed on the 60-minute chart. Watching for a downside break followed with impulsive selling to help validate that pattern. If so, at least T1 should be hit in relatively short order.

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