In my most recent high level model I was worried that the recent rally to the mid $27 range was either corrective (i.e. a 4th wave) or an leading diagonal (black 1 on the model). Either way I expected lower prices so I took profits on JNUG.
While the chart has not retraced all the way back to the 38.2 fib per the model above, it has completed 5 rail bumps of a falling wedge and that is a corrective pattern in my book. So today in the AH trade I bought a half position of JNUG for $21.80. My stops are set to 21.55 and while I could get screwed on a gap down, JNUG has already had two gaps down during this wave. Thus the odds of a 3rd are reduced and thus I like the odds of buying speculatively at support. The model below suggests a nice gap at the open is possible for JNUG tomorrow (assumes it is the start of a 3rd wave up). Time will tell.
Tuesday, May 26, 2015
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2 comments:
any update on jnug soon captain? Today it is around 21.8 so I took a small dip. Also have you ever look at uslv? Appreciate and grateful for your analysis as usual.
See today's post on ABX. We are near a confirmation of 5 waves down but have not actually gotten it yet. So the next couple days will be important to that analysis. Right now I am hoping for lower prices in M+M but I know this bear market in gold is long in the tooth.
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