Hubert Senters here.
Got a question from Randolph.
Hubert,
It appears that JNUG hit a bottom and is now retracing. What is your opinion on the chances on it getting to $300? Thank you. Randolph Moore.
Let’s take a look at it and shrink this text down here. Got to figure out what’s JNUG. If we look at it’s overall at one point in time DX, Junior, Gold, Miners, Bullish, Three shares.
Here’s my deal with anything that has to do with triple long or short. The Math is not in your favor the way they settle these things at the end of the day. Number one you had a disadvantage in that situation.
Number two you might be for Gold Mining companies they still have to find Gold. They’ve had to find it first which is hard to do. Second they didn’t have to extract it out of the earth at a profit.
Once again you got high labor cost and high fuel cost. Those two things are disadvantage. That being said this thing has been crazy high but I like the stuff like that. Let’s take a look at the life cycle of this thing. It’s had a rough life. So then I go ok, will it go to $300 is your main question.
Let’s look at it on a daily. It acts like it’s doing pretty well on a daily chart. And their main reason is because Gold is going up. With all those disclaimers that I have given you the risky propositions that I’m staying you might want to stay away from it.
If I think Gold is going higher I would obviously think that JNUG would go higher. Let’s just do this. Let’s just do some simple Math and I would say the drop from this most recent high to that you might retrace about 50 percent if we just take our mind out of it and let the Math do the ratios from this high to that low then it has a potential decent shot to retrace $50 of that $50 percent ratio to $360.
Now, there’s no guarantee obviously so then I would get a little bit more crafty and I would say ok, let’s take a look and see where the most recent targets are and then I would go point one, point two, point three and see where it’s headed from there.
So I’ll go point one, point two, point three. I would say initially in the next few weeks next few months maybe even over the next few years. I know you don’t want to hear that but I’m just trying to hedge my bets here.
I would say $174 to $181 and then you can deal with the next target as it potentially goes higher. Now, if you want to walk back these targets all you got to do is go like this and then you’d have to go all the way back probably to here to get to that $300 and then it will still give you $268.
Overall you’ve got a good shot. As long as Gold continues to go higher around it’s probably going to go higher. I don’t know if it’s going to hit that $300 to $360 but as long as you’ve got all the stuff going for you right now you’ve got a decent shot of it going north of $200 maybe even $268. I just don’t know if it will get to that $300 or $360 area.
Good luck. Hope it helps. See you on the next video.
Hubert.
