I got a comment from a reader concerning price support and resistance levels for the tripled-leveraged ETF, NUGT. He mentioned support being at $8.68, $8.36 and $8.02. And, also that resistance was at $9.34, $9.68 and at $10.00. I don’t actually know, but I’m going to pull up the chart and see.
It’s particularly important to do so, in my mind, because NUGT was specifically created to be a short-term trading vehicle, and so the concept of identifying support and resistance levels for this particular security becomes pretty important.
Everyone reads these things their own way, I suppose. I see the nearest support as being the $7.40 put in on 3/9. that level, or very near to it, is the ‘shoulder’ support that commences as far back as 11/14. The serious support is found with the December bottom from the 15th thru the 23rd. That support level is $5.51.
Nearest term resistance is, no doubt, right at $10. That’s been in place since 3/16. It will meet plenty more as it approaches $12, as there are plenty of shares recently purchased thru the month of February that some are going to want to get out even on. That would be the recent top of 2/2 thru 2/24.
If things get to jumping, and it can clear that last recent high of $13.70, back on 2/8, it should catch fire!
I suspect the levels my reader wrote of have to do with considerably shorter-term trading, as well as considerably more technical analysis than I engage in, as these $8 and $9 prices are all quite close to the current Friday close of $8.99.