10x Trade In This ETF

Gold has been one of the best performing assets this year, and with interest rates falling this trend is likely to continue.

Right now there is a very powerful set up in the gold mining stocks.

The gold mining stocks can rally even if gold doesn’t, but right now they are both going in the same direction. This is even more bullish.

Read below for a low risk way to profit from gold stocks exploding higher

As you can see in the chart below, the Gold Mining ETF (GDX) has a flag pattern.


This is a particularly good flag pattern for two reasons.

1. Its low is at the top of a previous swing high. This makes that low a strong place for a stop.

2. It has been a very orderly retracement with a strong up day off of its low on 8/20. The high if this day is a good way to mark a continuation of the up move.

As a result, the trade setup is very clear.

Buy if it trades over $29.10 (well above the 8/20 high), and place your stop under $27.50 (under the flag low).

GDX is breaking out of a multi-year base, if this move turns into a cyclical bull market for gold GDX could hit $40.

That’s a $10 move and more than 10x the $0.60 risk on this trade.

Trade smart,

Rick Nartarian, Chief Investment Officer
Darwin Wealth Creation