Today we are taking a closer look at Direxion Daily Jr Gld Mnrs Bull 3X ETF (ARCA:JNUG) as by its name, is a gold focused ETF. With commodity prices, specifically gold rallying since early 2016, it is no surprise to see this ETF on a tear. To add to the bullish bias, a recent technical breakout looks to be giving the bulls more momentum to push this ETF substantially higher.
With recent strength in the ETF, shares look to have broken out of a key resistance level at around $137. Should this level in fact be broken, the chances of further upside is amplified. After the $137 level, further resistance would be found at around $150 and $200. As for support, we would watch $100 and $90 on any near term share price weakness.
Our trade strategy would be to enter this ETF on strength. Upon a successful entry, we would place a price target of $195 and a stop loss price of $114. Based on today’s trading levels, our upside potential looks to be 41.4% and our downside risk is limited to 17.3%.
The stock price direction for the day for JNUG is DOWN. The stock is experiencing a strong downtrend as of late, with a decrease of more than 5 percent in the last five days. Based on BullishInvestor.com’s proprietary algorithms, JNUG is currently signalling NEUTRAL.
The most recent Candle Stick pattern for JNUG is the Belt-hold.
There are two possible reasons for the Hold rating currently given to JNUG. The first reason is that there may be indecision among the technical indicators or most of them may be neutral for JNUG. If the stock chart looks flat lined or is in the midst of a trend direction change, most likely this is why JNUG is showing Neutral. If, however the stock is currently in a visible up or down trend, the reason for the Hold may be because the BULLISH or BEARISH rating has already passed.
The last BUY was registered on Mar 01, 2024 when JNUG was trading at $ 25.04. Armed with this knowledge, there may still be some more strength left in this current trend or it may be near a tipping point, the market has not given a clear indication yet.
As such, it may be a wise decision to hold your stock or continue to wait on the sidelines in JNUG until BullishInvestor.com changes the rating for JNUG.