Let’s get right to it.
The decline in Junior gold miners from their mid-April high looks to have run its course.
This is evident by severely oversold technical conditions and by yesterday’s bullish price action that included a gap above the downtrend line resistance.
This adds a valuable layer of confirmation to what our E-Wave cycle model is already telling us: A cycle low turn date was forecast for yesterday – May 10 – as a bullish turn date for another move higher, as you can see below…
Our cycle analysis now calls for a rally into mid-July. It’s too soon to say the magnitude of the move will be, but if the magnitude of the recent decline is any guide, then the coming rally could be substantial and worth trading from the long side.
Here’s what we recommend:
Using 5% of the funds you have allocated to this service, buy Direxion Daily Junior Gold Miners Index Bull 3x Shares, symbol JNUG, at the market. Place a good-till-canceled protective sell-stop at $14.46.
Get this order in right away. Hold all other positions and stay tuned for new trades coming your way again very soon.
Good investing,
Mike and David
