There are two ways to do it. The safe route is to wait for a confirmation move. For instance, a positive candle pattern. The riskier route is to take a stab once the stock becomes oversold.
When choosing the later, it's best to play it safe with a small position size or tight stop. Today NUGT presented both options. It pulled back down to $16.50, which got it to oversold levels, before reversing into what now looks like a positive candle pattern. This pattern is not valid until the close.
While it may seem counter-intuitive to enter near the highs of the day, this pattern is actually the safer route, assuming it holds to the close.
Remember, in swing trading you must have a game plan. Often times the strategic moves you must make go against what our emotions tell us, so that plan must be in place going into the day.
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P.S. We traded NUGT successfully in the Trade Report and have been stocking it since the December bottom formation.