TA Update
What a difference a few days can make with both NST and Gold starting to turn around their recent slump.
Looks like NST has once more frontrun the underlying market (more on that later) with gold only turning back to 'rip-mode' in the last session.
After golds fakeout in mid Sept there has been nothing but selling.
Falling from 1947 all the way down to 1810.
I did mention I'd expect strong support from 1800/1805 and price bounced just a few bucks above this which is certainly a positive sign for gold bulls.
To say gold was oversold would be an understatement with RSI dipping to levels not seen for a long long time (highlighted on chart below)
With so much trading above it would be fair to assume there is more upside to come in the near future.
However price did stop at a key level overnight and if you're long that's one level to watch.
That level is 1836 (as marked on chart)
This level dates back to the consolidation period in Feb/Mar and was a 'long only' accumulation zone back then.
I'm sure all of those contracts have been distributed since then but nonetheless is still an important level.
If price can climb above this level then there is a large volume void (marked on chart) all the way back to site of the breakdown, where selling really started to intensify.
That level is just below 1900
Gold Daily
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Now flipping over to the NST chart.
As I mentioned earlier, NST has a habit of front-running the gold market (potentially something to note for any gold traders out there).
Gold itself only bottomed overnight but NST actually bottomed out on Tuesday.
The sp dipped all the way down to $9.99
I cashed out puts when NST traded at $10.05 and $10 (as mentioned real time earlier in thread) so I'm pretty happy with the result.
I do still have some calls which are looking pretty healthy again too.
Just before the Fed met gold broke out to the upside and I warned that these early moves often end up being a false move and we saw that play out in spectacular fashion. The breakout ended up being a fakeout and the selling really took off after the market realised this.
These false moves (fakeouts or fakedowns) do provide some of the best entry set ups for traders and is a strategy I use a lot.
The good news is NST has just had one of those.
The chart showed a H & S (head & shoulders) pattern that had a neckline around $10.15
I'm sure the break below this level would have drawn quite a few naughty shorters in.
However this move was another false signal and would have burnt those same shorters ever since.
Another positive move from this upside rip is the fact that Friday's trading broke and closed above NSTs 2yr VPOC (most traded price) - $10.68
This is a big deal and one level NST bulls will want to hold for further upside.
Volume profiles get pretty thin from here above, so if gold can manage to break above 1836 then NST has a real shot at testing the HVN around $12.50 in the ST.
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Anyway, that's it from me.
Remember to play safe, always DYOR and good luck whichever way you trade
(20min delay)