GDX / NUGT Daily Update

Yesterday I posted Very Seriously Considering Adding A Partial NUGT Long Position and today I'm feeling the same way, I think there just needs to be an event/signal that gets me off the wall where I'm admiring the way the "come to me" trade has developed to jumping down and saying, "We don't ever ignore signals like this".

If you recall, I laid out the bigger picture on Monday May 5th in this GDX / NUGT Update when GDX was trading (this is a chart from the actual post)...

Right at the head fake high ABOVE the range, the very next chart from the same post was this one with the following commentary...

..."This is GDX's 10 min chart that looks specifically like there was a distributive move, enough to send GDX below the support of the range. This is one of two charts that needs to be repaired and go positive and the way that will happen is the accumulation of shorter timeframes on a move lower and/or below the range."

Shortly after, we got a move to support and yesterday in this GDX/NUGT Update we got...

From the post yesterday linked above, the move we were looking for BELOW the range.

So, from this point, the only thing that we were still looking for that was expected from the first post linked above from Monday, was the 10 and 15 min GDX and NUGT charts (the same ones telling us that a break below the range was coming) to start repairing themselves and eventually going positive which started happening yesterday which can be seen in yesterday's updates.

This is what we have now...

 There's work that needs to be done on the 1-3 min charts, this is where the migration of the divergence is going to move to the longer term charts where we need it. That said, this is a leading positive divergence in GDX.

The 2 min chart of NUGT shows initial accumulation as stops and orders were hit on the move below the range, but you can see 3C momentum fading here.

And at the 3 min GDX chart the momentum has faded to a simple "in line" or 3C / price trend confirmation.

We need improvement here.

The 5 min charts are leading positive so they "should" continue to work on repairing the 10 and 15 min charts which were always the objective, at least as far back as the initial post Monday.

GDX 10 min is slightly leading positive which is a huge improvement over the previous negative divegrence in to the head fake false breakout which needed to happen to get the downside momentum to create another head fake move , but this time BELOW the range.

NUGT's 15 min chart is leading positive. We need these charts to all be leading positive with good confirmation between GDX and NUGT and DUST should show the exact opposite divergences for confirmation.

Remember, this is the prize, a huge STAGE 1 BASE, Accumulation, in the form of an Inverse H&S pattern and we are on the right shoulder near the lower end, the next move (unless we form a second right shoulder), should be through the neckline and that's when we enter stage 2 trending.

As you may recall my estimate based on the price pattern is an upside target around $43-$44 conservatively speaking.