Wednesday, May 24, 2017

JDST This Time!

Hauntingly similar to JNUG two weeks ago, an extremely shallow uptrend line in JDST yesterday gave a great risk/reward entry below 70.00 {stop 68.73} which topped out today at the interesting 85.50, while the target of 22.50 or better for JNUG may still be in play after its deep retracement.

Stay Tuned!

Wednesday, May 17, 2017

JNUG: An E-Build Study

Sideways Wedge Pattern

The E-Build is a sideways wedge pattern, here with staggered ABCDE notation, which presages a potential E-Breakout.  Often enough the trend direction is unclear until the E-Point is determined, and it may require the B to become A, etc.  Nested E-Builds, as in this example, strengthen the move significantly.

Combined with the recent shallow angle uptrend base in JNUG, this entry was both low risk and likely to finish higher than usual.  A trading range peak of 22.50 is possible – maybe more.

Stay Tuned!

Tuesday, May 16, 2017

GLD: A Trendline Study

Here, the first occuring and steepest angle uptrend line in GLD had three shorter uptrend breaks within it.  Topping in February, it broke, and bottomed in March.  From that low newer highs were achieved in April, finally breaking a less steep uptrend line in early May to hold at the current very shallow angle line – matching the Trump Range base!

Only one significant break is generally acceptable for such trendlines, and then a new high must be forthcoming or recent lows will likely be tested.  This is a strong tendency, and the inverse is true for downtrends.

The Trump Range remains significant resistance, enabling a measured and relentless move upward, which is just what the doctor ordered.

Stay Tuned!

Thursday, May 11, 2017

Low Risk JNUG Buy

Already up over ten times risk!

An extremely shallow angle secondary uptrend line enabled a very low risk entry into JNUG on Tuesday, where any buy below 14.50 {stop 14.19} is now up over ten times that risk (close Thursday 17.65).  Using the "two previous lows" method to determine stop losses, a retest buy on Monday meant about .70 risk {stop 13.71} as opposed to .30 or less on Tuesday.

More positives on this chart are studied above.

Stay Tuned!

Tuesday, May 9, 2017

Gold and the Dollar

Swing Trade Bottom?

As a possibility mentioned yesterday, GLD reversed at its uptrend line, and with a candlestick Hammer.  This sometimes means a trend change.  The 115.56 low (1215) was just .07 above the Trump Range base of 115.49.

Concurrently, the Dollar Index (DXY) gap to 99.73 nearly closed, and the day high of 99.69 broke above the April 21st low of 99.65 (its close of 99.98 was a weekend tick).

A potential DXY declining wedge E-Breakout should keep traders on their toes.

Stay Tuned!

Monday, May 8, 2017

Trump Range Resistance

Gold must break through this!

As noted in March, the Trump victory Gold bull trap has created significant resistance, which is ongoing.  The current GLD pullback should hold above 115 (1200-1210), where the Trump Range base intersects a secondary uptrend line.

Many Trump supporters have been burned badly and, even after six months, the wounds may be festering.

Stay Tuned!

Thursday, May 4, 2017

Trendline Magic

Breakdown warning days in advance!

On April 27th the XAU slipped through its uptrend line to 80.36, which signaled a potential breakdown.  After a brief retest up to 83.35, it broke again, and today plummeted to 77.46, just under the March low of 77.62.

Closing above March to 78.26 was a positive sign; however, if downward pressure continues, an ABC-D target of 65.25 will likely be tested.  Below that is the E-Breakdown pattern result of 47.74, with a possible stopper above it at 54.12.

So far, the stubborn Dollar Index has refused to violate support.  Tomorrow's Jobs Report may be the highlight of the week.

Stay Tuned!