Jnug to Gold "BBands are tightening, big move in two weeks"Jnug Daily Chart
The price action today was right in my little blue box so that was just about perfect. We retested the 10 DMA and closed below the 20 DMA. We still have two more days for the COT report (which cuts off on Tuesday), so I can easily see Jnug drop to the lower pink line. But I gave two ideas. The first pink line is an exact measurement of the first part of this zig zag move down. If that is all we get then I could see Jnug reaching the $7.90's (100 DMA) by the end of next week. But it really isn't too much at all to see Jnug fall to the lower pink line in the next two days. At that point I would be looking for Jnug to rally to that resistance zone that I highlighted and possibly topping out at the $7.75 range. That would be about a 34-35% move. Either way, I would sell Jnug and immediately buy JDST because as you can see, the cycle will be coming to an end around April 10th. So that means Jnug should drop that last week. The BBands should be nice and tight at that point, indicating a big move is about to commence. Interesting how those BBands are coming together right when the cycle ends and a new one begins. This should break Jnug out of the orange wedge and into the larger wedge. I think we will get a really big move at that point but it should only last 1 to 1 1/2 weeks. The reason why I say that is because the daily cycle for spot gold should end sometime in middle May. So I am expecting spot gold to have rolled over by then if it doesn't already start this next two weeks. Oh and another thing to point out. If you have not noticed, the 50 DMA has started to turn down and is really not that far away from the 100 DMA. If they cross, look out below. I am going to take a guess that they cross in early May.
I left my indicator as neutral because I do think we will drop for only two days and then run. GL everyone. lets hope I am correct again.
