Break Out in a Down Trend

Ok…this isn’t CEFL but I want to use it for a teaching tool. In my other accounts I trade JNUG. It has been in a SOLID down trend…Notice on the chart below the breakout reversal didn’t happen till the RSI was below 30 in the extreme oversold. I don’t use RSI for trade signals but it is part of the soup so to say. This down trend is strong…notice there have been 4 failed attempts to break out above the 20 ma. So the next few days will be important, but TSI, MACD and price itself all flashing buy signal and possible trend change. But with the downtrend having been so strong we can’t get to excited. I need to see price hold the 20 ma for a few days and the 5 ema to cross and close above the 20 ma. As of the posting of this chart price has broken above previous resistance…so it should hold as support now. If so…the 200 ma would be first logical target. All of this analysis is explained in my FREE book, The Money Flow.

jnug1229

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