If This Happens, Gold Mining Stocks Could Skyrocket

Gold Mining Stocks Poised for Gains

Time flies. A month ago, I offered Profit Confidentialreaders my “Longshot Pick of 2016” based on a combination of technical and fundamental analysis of my favorite gold mining exchange-traded fund (ETF)—theDirexion Daily Jr Gold Miners Bull 3X ETF

The subsequent crazy action in the gold pits took everyone by surprise, including me. At one point, the pick was up more than 200% in just a few trading sessions from the date of the article, nicely took out its first resistance level, and now needs to take out the $61.00 level to continue moving up the profit ladder (see chart below).

Source: TC2000.com

The good news is that JNUG did manage to hold on to most of its gains, even when the inevitable “retest” of the sector breakout began, while both the yellow metal and the miners settled back to Earth a bit.

Such is the bizarre nature of the gold space that, even though all the pick has done so far is retrace to its price level of October 2015—just a few short months ago—the anti-gold crowd is busily penning editorials suggesting “the move” is already over and if you blinked, you missed it. The truth is that on a longer-term chart of JNUG, the action so far is barely a fly-speck and almost insignificant.

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