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This chart is GDX, the gold miners ETF. It is showing a very strong bullish divergence in the money flow index, which at significant bottoms tends to be a leading indicator. See the green circled areas for the last 2 set-ups in the money flow index like this.
Additionally, doing any quick searching on gold seasonal price movements shows the September time frame as a positive trade, and gold is generally strong from Sept through December.
Additionally, the smart money has recently moved to a historically extreme bullish position, suggesting a price support level has been hit at the recent lows in gold.
I plan to enter a December 13 call option on GDX tomorrow. I am placing a limit order of 1.90 initially. Currently the ASK is at 2.00.
Once entered I would set a limit order to exit of 6.00 or 300% gain from entry price.
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