Reason: Potential tradable bottom.
There is no confirmation yet of at least a short-term bottom but Thursday's large black hollow candlestick (Almost a Marubozu) is suggesting potential selling exhaustion after a dramatic selloff. In addition yesterday's weakness at the opening + strong close printing a Hammer is strengthening the idea of a potential bottom.
The RSI (5) is extremely oversold but the absence of a positive divergence suggests treating the potential up leg as a countertrend bounce.
If today price opens below yesterday's hod and then rallies into the eod we could have a 3 -days reversal pattern (Morning Doji Star).
If a short-term bottom is in place and a multi-day tradable bounce is in progress we need to see the 3 dma = 36.31 becoming support. If this is the case probably NUGT could reach in the next few days the cluster of resistance located in the range 43.35 (0.382 R) - 44.48 (Gap fill).
If the gap at 44.48 is closed then probably the initial considered "oversold" bounce could morph into something more bullish.
The issue for the long setup is the stop (below yesterday's lod) which means an 8.5% risk hence I hope for pullback at the opening or maybe chasing it with small size.
