Direxion Daily Gold Miners Bull 2X (NUGT)

[Nightridertwou]

The $1265 level in the June contract continues to be “line in the sand” resistance which traders have been zeroing in on dating back to last July’s highs. We feel comfortable being short against this level with risk/reward strongly in the bear camp’s corner. As long as gold remains below $1265 the door is open to substantial downside potential. A convincing close above $1265 is an easy tap out spot for the bears, and a spot to consider flipping long that would confirm a bullish breakout. The first key support comes in at $1238. A close below $1223 should trigger the next major wave of selling pressure.
The “fenced in” structure around being short gold from the $1255-$1265 level is an ideal set up from a risk/reward perspective. Risk on the trade couldn’t be more clearly defined and the downside reward is easily justifiable.