SQQQ (3X Inverse Nasdaq) VS NUGT (2X Gold Bull)Interesting. SQQQ lags behind NUGT slightly as the two charts are compared.
Most interesting is the most recent movement. In most points on the chart the two variables are within 20% of each other in regards to their movement from zero change.
However, in the last time period of the chart (final candle), the difference is 80%. Therefore, NUGT has to come down, or SQQQ will be going up. Another option is a combination of the two.
If both made a 40% change, that puts SQQQ at $54 and Gold down 40%. If SQQQ rises 80%, that puts it around $58 within the next week. The more likely scenario based on past movement is a slightly opposing trend direction to reduce the distance between both variables back to the 20% level, shedding 60% of difference.
SQQQ is a 3X and can move more, therefore I assess a 3/5 weight to the 60% difference and apply that to SQQQ's target price; current price of $32 x 3/5 x 60%=$32 + $11 = $43 on the low end. High end expectation would be the 80% difference, or $32 x 3/5 x 80% = $32 + $15=$47
Price expectation of SQQQ within 1 week; $42 - $47 based on this analysis.
