Tuesday, June 27, 6:36 am EST. Are you kidding me? Look at that! Overnight, gold’s been working its way back! At $1,251.20, it’s nearly all the way back… and silver, too. Each are up about 1/2 of 1%.

The miners closed ‘well’ yesterday, considering the drubbing gold had taken the night before. I find all of this to be evidences of strength, and of strong underlying support. I looked at all the charts, and the miners fared way better than the metals. December, March and May lows are intact… and, the Bullish Wedge pattern, that the average of all the issues I track, is getting tighter and tighter. There’s not much room left. Which way will it break? My ‘guess’ for now is… higher!

Harold

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2 thoughts on “Comin’ Back!

  1. With NUGT’s recent 4 – 1 Reverse Split ( fewer shares), what will that do to price of those shares when lift-off takes place ?

    Will price accelerate at a more rapid rate ? Will price of the shares move even higher relative to last years run up ?

    Or will the $$$ flow to other Gold stocks ? What are the best alternatives to NUGT ?

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  2. My answer would be likely nothing, as NUGT is triple leveraged, and they accomplish their particular daily price move to coincide with a tripling of gold’s daily price change by means of manipulating the fund’s gold futures contract holdings. Since their goal and purpose is to as closely match a tripling of every day’s move, it should have little, to no effect, upon NUGT’s price action. Reversal splits serve to raise the share price is all. Harold

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