Well that didn’t take long. NUGT broke up through its 14 level yesterday. As you know (because you’ve read every word I’ve written, right? haha), our plan was to watch NUGT for a small buy if it dropped to support at 11 and held there, or rose above 14.
So yesterday NUGT opened at 14.43 and spent the rest of the day wandering between 14 and 15. There was one small dip back below 14, which you could have taken advantage of by buying when it rose back above 14 “a little bit.”
Now as anyone who’s traded a while knows, “a little bit” varies depending on the price of the stock. In general it’s 1 cent for every point of stock price, up to 25. Then 25 to 100 it stays at 25 cents. Above 100… well, for now let’s leave discussions of high-priced stocks for the future.
So if you were following the plan, you would now be holding “a small amount” of NUGT, with a price around 14.15. What should you be thinking next?
For answers to questions like that, we turn to the chart!
For visualization I’ve drawn lines showing the most recent, and most obvious, support and resistance levels. Now suddenly the trading becomes obvious.