On March 15, $DUST had a nasty break. In fact it was the sort of massive drop we were looking for since last week. But when Yellen came out with news of interest rate hikes, $DUST took a massive nosedive. When a stock makes a powerful move like this it immediately gets put on our radar. So we watched it to see how it would react the following day.
Daily Chart – $DUST
With that much pressure, the selling continued aftermarket and premarket causing $DUST to gap down. But once the market opened $DUST was exhausted; it was too extended. See, the harder the push in one direction, the stronger it has the potential to snap back. Because $DUST also gapped down at the open, it had potential to fill in that morning gap to yesterday’s low at $30.30.
Intraday Chart – $DUST
Right out of the gate $DUST started showing strength. The first 1 min. candle was a hammer and the second one cleared its highs. I entered $DUST long at $29.16 anticipating the breakout with a stop below the bottom of the first tail, $28.81. Immediately the stock pushed higher and I scaled out of my position at $29.47, $29.70, and $29.90.
After resting at the whole number $30.00 level it pushed even higher, blowing past $30.30. Later it began to setup for another push, triple tapping at $31.00. Once it broke out here we got another push higher.
$DUST is an ETF that moves off of the gold miners ETF, $GDX. $GDX gapped up into resistance on the daily chart, signifying that $DUST was also ready for a big move. All we had to do was be patient, be ready, and ride that wave higher.
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