Today’s rally advanced the bullish case for mining shares in a subtle but powerful way. Notice how the intraday high decisively exceeded a small but technically significant ‘external’ peak at 84.40 recorded last July. Besides having bullish implications for the near-to-intermediate term, it also created a ‘hook’ that traders can use to fashion an ABC-type pattern with an entry trigger. More bars are needed to set this up, but the important thing is that we now ‘know’ that a pullback is likely to be corrective and therefore a buying opportunity. If and when this happens, we’ll be ready for it in the chat room — in real time. Subscribers eager to trade an equity vehicle in gold rather than futures contracts should monitor this one closely. ______ UPDATE (April 19, 8:32 p.m. ET): NUGT looks bound for at least 92.63 most immediately, but if it can get past that secondary pivot, look for more upside to D=100.50. To locate the pattern on the hourly chart, use A=56.52 (4/6 at 2:30 p.m.).
