Swing Trade Idea (NUGT) – June 6, 2024
Our bullish trade for Thursday, June 6th is Direxion Daily Gold Miners Index Bull 2X Shares (NUGT). NUGT is part of the Industrial Sector, which has performed at -0.87% over the last month, with NUGT overperforming at 1.87% over the same period.
NUGT is in an uptrend and found support at the 50 Day SMA from where it is expected to continue higher. NUGT is currently overperforming relative to its sector and a widening gap is expected as Gold has started to trend sharply in price, which will drive the price of Gold Miners in general higher. We are playing a bullish Credit Spread which generated an excellent return of 45% Premium over Width.
As a close, if NUGT were to trade below $38 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $4.50 Debit.
