Physical gold is timeless money, but for the brave speculators, there are times whereby getting exposure to the gold price via gold mining stocks or mining stock exchange-traded funds (ETFs) may be an attractive proposition.
For the truly brave, perhaps leverage to the gold price via owning shares of a mining company isn’t enough, and a further leveraged ETF is the trading instrument (not an investment) of choice. The below chart is one of a double leveraged gold miner ETF shown on a weekly timeframe. The yellow highlighted areas are zones whereby price stretched far beyond the 200-week average and needed to “snap back”; will the current low play out as it has over the last two years?
The blue arrows indicate points of interest: The first shows a negative divergence on the weekly stochastics compared to price (sell signal), and the second shows a wide open gap that could just be waiting for the price to eventually fill.
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