Sunday, April 12, 2009
Novagold fractal dreams
I am currently long Novagold (ticker: NG) as a short-term play using call options. Looking at a long-term chart I found an interesting fractal that may indicate a chart "rhyme" is coming. The fundamentals for gold miners are wildly bullish and would be supportive of such a scenario. To the charts...
First, a 6 month daily chart of NG up through Friday's close:
Next, a daily chart of NG from 2004:
And, as someone happy to talk up my trading book, you can probably guess what happened next:
Only Mr. Market knows what happens next...