Finally, do we have a bottom for $NUGT?

Here is the fundamental catalyst for yesterday 25% jump on price action for $NUGT:

From Dow Jones Newswires’ Matt Day and Laura Clarke:

Data released on Thursday showed Chinese exports and imports both grew at a faster-than-expected pace in July, a sign that the second-largest economy was steadying after a first-half slowdown.

In response, the cost of physical gold on China’s benchmark exchange rose another $4 an ounce to $5 an ounce above London’s global benchmark, traders with TD Securities said, potentially a sign of increased demand there. China is the No. 2 gold consumer, and stronger growth can lift demand for gold.

The data gave “hope to those gold bugs who hope that Chinese buying will lead [prices] back to the heady heights of 2011,” said David Govett, head of precious metals with Marex Spectron. Futures hit record highs above $1,900 an ounce in September 2011.

Now, take a look at the daily chart below:

Did you see the previous big green bar on 6/28 and the one from yesterday?  Yesterday big green bar has a higher low than the one on 6/28.

So?

Well, after the big green bar on 6/28, price began to climb to the high of $8.57 on 7/23 before correcting; this time, I like to see it breakout of that $8.57 high.

Below is the weekly chart:

Did you see the identical “T” shape weekly bar for the week ended of 6/28 and the one ending this week?

Does it look like it is going to bounce right out of the gate?

Fortunately, I bought some starter position two days ago and added more yesterday after the open.  I may add more if market open higher in the morning.  I like to see that price will zigzag all the way back to the former high.  This will allow me to hold on to my position for a lot longer.  I just need to learn how to “sit” on this position…

My 2 cents.

 

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