After the Direxion Daily Gold Miners Bull 3X ETF (NYSE:NUGT) satisfied our swing target of 7.00 off of the Dec. 2015 lows (5.55-5.51), which represented a very important objective -- NUGT’s ability to hurdle and sustain above 7.00 argues that a more important, more powerful recovery rally is in progress.
This rally points next to a confrontation with NUGT’s Dec. resistance line, which cut across the price axis in the vicinity of 7.90 Friday morning.
A sustained, upside penetration of the resistance line will exhibit additional evidence that NUGT and the miners are in the grasp of an incomplete, powerful, recovery-rally period that has as its next target at 8.60-9.25.
