After moving up strongly in wave 1 yesterday, JNUG appears to be forming a vee type bottom on this region. As you know, after a long move in a given direction, a double bottom is often the signal used to indicate the direction change. The left bottom is often rounded which then leads to the initial surge. In the case of JNUG that was a 16% peak move up yesterday. Then comes a vee style 2nd wave retracement which tends to bottom in a vee, not a curve, and then head up into wave 3. As long as wave 2 does not go below the level of wave 1, it is safe to hold the shares. Friday's low was $9.65 so by getting back into JNUG here I only risk 10 cents to the down side with the possibility of doubling my money in short order.
My current target for JNUG is ~$20 because following an ending diagonal throwunder the chart often retraces the entire length of the falling wedge. Combine this with the significantly oversold and broadly unloved condition of metals right now and we have a great trading opportunity at hand: high reward potential with only a few cents risked on the stop out.
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