I have been monitoring metals and crude oil for weeks.

On 6th Jan, I was struck by Gold bullish divergence. I decided to anticipate and trade a gold mining related stock, ANV(NYSE) entry at $0.993(long).

I decided to write up my gold analysis and share it with my readers.

As I write this, gold is up nearly $15. Anyway, I'm sharing this with you - how I approach my trade…

Allied Nevada Gold Corp. (Allied Nevada) is a gold and silver producer focused on mining, development, and exploration of properties in the state of Nevada.

The Company's operating mine, the Hycroft Mine, is an open-pit gold and silver heap leach operation located 54 miles west of Winnemucca, Nevada.

On the right side of the weekly Gold chart, price is grasping for support, and the MACD Histogram is showing bullish divergences.

As one of my students always ask me, “How can we take advantage of this”?

If these bottoming patterns play out, the best trades may be in the mining stocks, or the related leveraged ETFs. Personally, I like mining stocks.

I have traded in and out of some US mining stock with good profits.

I have posted to Divergencetraders broadcast group for case study on 6th Jan, ANV (Allied Nevada) shares price was 0.993.

6th Jan 2015

12th Jan 2015

On 12th Jan, ANV day high was $1.32 and It closed at 1.19. I am still holding it.

I am certainly not offering you advice – but I want to share with you my thinking on gold and how I managed my trade.

Talk to you soon.

Best wishes.

Divergence Trader

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