JNUG update

The traders delight in JNUG is playing out similar to the model I posted here.  However, it is unusual to see the internal part of a triangle show a double bottom as shown below within the red circle.  The fact that it is dancing on top of the 23.6 as a support line after already having made a stab down towards the 38.2 should also not be overlooked.  It does not look weak to me.

Having said that, I would be much happier with a move back down to the 38.2 though as it would give me more confidence that this is a real larger scale pull back and not some intermediate dance which is still part of wave 1 (i.e. a crazy 4th of 1).

This is beginning to look like a flag formation folks.  This could turn out to be very meaningful when considered in conjunction with the larger theory which is that gold is working on an E of 4 wave.  If this is really the case then GLD should will be making this journey using an a-b-c thrust.  If miners are parroting this move then we the recent top could be A and now we are working on B in JNUG.  B would be a penultimate wave which is a good candidate for a triangle.  I can count 4 waves right there of a triangle.  One more move back down to kiss the 38.2 or even to throw under to the 50 fib followed by a punch back up through both rails would provide a very high quality entry point for some massive gains in just the next week or two.  Alternatively, this double bottom could hold and break out at the blue circle which would be a buy signal.

A flag formation target price is where the C wave is the same length as the A wave.  Do the math on what that would mean in terms of percentage gains if you can catch JNUG in the $20 range for a trade up to ~ $30 or $31.  That would be a minimum target for me, it could go higher.  C is oftentimes longer than A.

By the way, it is no coincidence that the chart paused here.  Look at the resistance line it is up against.  This lends credence to the thought that wave 1 up is complete and that the chart needed to pull back into wave 2 so that it would have enough horsepower to break through that up-sloping orange line during a 3rd wave.  It generally does take the force of a 3rd wave (OR a C wave...) to break up through meaningful resistance.

One final word: if gold does indeed execute a valid a-b-c structure E wave on the 4th wave triangle (which can include a failed E wave folks, don't forget that possibility!) then it will clearly be time to flip over into JDST and ride it up while gold does 5 waves down from the peak of 5 into the depths of the 5th and final wave of this series.  Did I say that had to be the absolute bottom for gold?  No I did not.  And in fact, the EWI guys think it is just wave A.  They are not always right but one should never ignore their view either.  but there is one thing that is very high odds: if we do get 5 waves down into about $1k gold then expect a nice move back up to at least the 38.2% fib and it could even be the 50% fib.  You really, really want to be in JNUG for that move.  Seriously.