Gold and NUGT
There is a potential measured move down IF gold breaks down.
It just looks from the charts that gold has had plenty of time to consolidate and should be on the edge of a big move one way or the other.
Gold is at a trend line which could give it a bounce again, but if it breaks down, this is what I am looking for.
There is also a 123 pattern that triggered a short position as well and these are the potential targets. Target 1 should be a minimum IMHO and the line between target 2 and 3 is the long term trend line that it broke back in June
Gold is known for retesting a major trend line once it has broken it and also doesn't consolidate for more than the 13-15 weeks as shown in the grey boxes.
This chart really makes it look like we could see traders start to take profits in gold and see a bigger sell off and a retest of the major trend line at 1340-1350 before buyers step in again.
The NUGT chart looks a lot like the JNUG chart with a lot of gaps below.
There is a potential for a Bat pattern to complete which brings price back into the second gap. I don't always expect a break away gap to get filled.
If you look at the intro to this forum I have listed some of the harmonics related to the ABCD pattern and the fib extensions.
The ABCD pattern did not retrace to the .618 so I would put it at the .50 BC retracement which has a CD target of 2 at point D
Then we have a fib extension to look at. For this both the .50 and .618 have a target of 1.618
And keep in mind the previous chart that showed a potential for a bat pattern which has a .886 target and you put all of those together and this is what you get.
From current NUGT levels that could be a 32% drop if gold sells off hard in the coming weeks.
There is a potential measured move down IF gold breaks down.
It just looks from the charts that gold has had plenty of time to consolidate and should be on the edge of a big move one way or the other.
Gold is at a trend line which could give it a bounce again, but if it breaks down, this is what I am looking for.
There is also a 123 pattern that triggered a short position as well and these are the potential targets. Target 1 should be a minimum IMHO and the line between target 2 and 3 is the long term trend line that it broke back in June
Gold is known for retesting a major trend line once it has broken it and also doesn't consolidate for more than the 13-15 weeks as shown in the grey boxes.
This chart really makes it look like we could see traders start to take profits in gold and see a bigger sell off and a retest of the major trend line at 1340-1350 before buyers step in again.
The NUGT chart looks a lot like the JNUG chart with a lot of gaps below.
There is a potential for a Bat pattern to complete which brings price back into the second gap. I don't always expect a break away gap to get filled.
If you look at the intro to this forum I have listed some of the harmonics related to the ABCD pattern and the fib extensions.
The ABCD pattern did not retrace to the .618 so I would put it at the .50 BC retracement which has a CD target of 2 at point D
Then we have a fib extension to look at. For this both the .50 and .618 have a target of 1.618
And keep in mind the previous chart that showed a potential for a bat pattern which has a .886 target and you put all of those together and this is what you get.
From current NUGT levels that could be a 32% drop if gold sells off hard in the coming weeks.
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