Both GDX & NUGT are currently trading just above their respective first target levels (T1) in pre-market trading, allowing the opportunity to book partial or full profits for those who were targeting T1. That would give the NUGT a gain of over 7% in less than 24 hours (or under one full trading session). Gains on the trade ideas posted here are calculated using the opening price if a trade gaps above the entry criteria, which in this case was the falling wedge pattern yesterday (resulting in a lower return than had NUGT/GDX cross above the pattern during the the regular trading session). Although we might get a temporary reaction around these first target levels, the charts of gold (GLD) and GDX (NUGT) still look constructive so my preferred targets at this time are T2 for both GDX & NUGT. As always, use stops and take profits according to your own trading plan.
GLD, GDX & NUGT pre-market Feb 26th
The charts above are the 20 hour, 2-minute period charts of GLD, GDX & NUGT showing both the regular session (white) and extended-hours (gray) trades. Something that I’ve mentioned in the past is my preference to use pre & post-market trades to exit a position if/when my profit target on a trade is hit but to avoid using the extended-hours trading session for stops. Extended-hours gains & losses are often faded & even reversed at or before the open. Over time I have found that by allowing a standing sell limit order on a long or short position to be filled in the extended-hours trading session (and option that most brokers allow) has provided me the opportunity to exit a trade at my pre-determined profit target when that trade would have gone on to reverse before the open after hitting the profit target (resistance or support level) before the market opened. On the flip-side, with many sizable moves on a stock during the extended session often reversed by the open, I do not allow my stop-loss orders (you’d need a limit order anyway) to be filled in the extended-hours session (i.e.- post or pre-market trading).