In a report today, January 5, 2017, Patrick MontesDeOca, CEO of the Equity Management Academy, predicted a “major, major breakout” in Direxion Daily Junior Gold Miners Bull 3X ETF (JNUG) shares.
“We have clear signals,” MontesDeOca said, “of potentially a truly remarkable trade.”
MontesDeOca tracks the 9-day moving average for short-term trend identification. The market, he said, has moved above that average, “giving us a very clear buy signal.”
Reinforcing that trend is the use of Fibonacci numbers. “We use the Fibonacci retracement from the high back on August 29 to the recent low on December 19, and what we see is once again a trending pattern that projects the 23.6% Fibonacci retracement to be at $10.62, 38.2% is at $14.97, the 50% target is $18.49, a 61% retracement is $22.01 and a 78.6% retracement is $27.02.” With the market currently trading at about $6.75, MontesDeOca said, “This is just the beginning of what appears to be a really exciting move.”
Turning to possible resistance levels, MontesDeOca used Fibonacci fan lines to “get a pretty good indication of where the resistance levels are in relation to the retracement,” which is at about $14.97. He predicted some resistance at $13.21 and up to about $17. The upper end of that resistance is at $20.74.
“My objective,” MontesDeOca said, “is approximately the 50% to 61% retracement of $18.49 to $22.01. These are the targets we are looking at for the next three to six months. We are looking at a major, major breakout in JNUG.”
For more information on JNUG and the the criteria to join the Academy’s select group of investors, please call 805-418-1744 or email support@ema2trade.com.
