drbubb Posted September 14, 2006 Report Share Posted September 14, 2006 Despite the recent fall in Gold below $600, the Gold share indices do not look too bad Weekly HUI ... update : daily // weekly XAU -- Gold and GLD : GLD daily In fact, after the dip, this chart looks as if HUI may be due for a sharp rally, assuming it can hold the 52week/ 252d Moving Average. The Weekly XAU chart shows support a bit lower, at xau-120. For HUI, a drop to the lower Bolly band, near hui-288, would not be a damaging thing, so long as the price action quickly gets back above the 252d MA. Shorter term, I like to focus on GDX, the Amex Gold stock index, because there are volume figures. The problem with the GDX data is that it has been available for only a short time- since late May 2006. History shows that it tracks HUI extremely well ... update But we only have the volume indication for 3 1/2 months... update The GDX volume was heavy the day Gold fell through $600. This is not surprising, given the historic importance of this key level. But this momentum can be mended if it is quickly reversed (as it was on the last low in June) or if lower lows are made on light volume, and that looks as if that is what the market is trying to do. = = = = = LINKS: Frank P's thread: http://www.investorshub.com/boards/board.asp?board_id=1430 Link to comment Share on other sites More sharing options...
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