the GDX/NUGT short continues to work out nicely and although i still believe the odds favor a downside resolution of this pattern, anyone currently short or looking to enter any gold stock shorts at this point should keep a close eye on the bottom of that broadening wedge pattern posted a while back. personally, i’m still short NUGT entered on the partial rise back on feb 6th but i’m waiting for a confirmed break of this pattern before adding to the position.
i’m also eying some individual gold stocks as potential shorts but when trading individual stocks, one needs to confirm that the technicals for the sector align with, or at least don’t contradict the trade. with GDX at key support, entering any individual gold stock shorts here, even on a clear pattern breakdown, could prove to be premature if the sector (GDX) holds that support and starts moving higher. the updated weekly and daily GDX charts are below.
