NUGT got schmeissed just shy of a bullish trigger-event that had promised more upside over the near term to as high as 127.94. Instead, the ETF lost nearly a quarter of its value in mere hours. Although the dive looks devastating on the intraday charts, its merely corrective on the daily (see inset). I’ll be looking for a turn from near 75.10, a Hidden Pivot support with a so-so pedigree. If it gives way easily, as it might, the bullish ABC pattern shown would still be our frame of reference for the time being. _______ UPDATE (May 19, 8:36 p.m. EDT): NUGT made a tentative bottom at 76.12, a point from my target, then rallied sharply to 90.18. If the move is going to get legs, however, we should see a push past 89.79 (p) today, with a finishing stroke to 93.80 (2-minute chart, a=82.15 at 10:56 a.m.) For the record, trying to get in near the low using camouflage would have been tricky, even on the two-minute chart. _______ UPDATE (May 22, 12:45 p.m.): Although mildly encouraging, the rally fell 0.70 points shy of the 93.80 benchmark given above. Now NUGT will have to hit 94.76 Monday or Tuesday to suggest that bulls are about to regain the advantage. _______ UPDATE (May 24, 5:24 p.m.): Look for NUGT to continue down to at least 59.61, or to 54.16 if any lower. Officially I’ll recommend bidding 54.20 for 400 shares, stop 53.99. _______ UPDATE (June 6, 9:41 a.m.): The stock took off on June 3 after having gone no lower than 67.33, so we did nothing.
