According to this chart, the XAU-Au ratio has made a lower low to the 2008 low and thus has massive resistance above.
Okay, but in the spirit of truth in advertising, maybe an area chart is not the best way to go as it does not show the actual low to which the ratio declined in 2008.
A monthly candlestick chart shows the situation we have been operating to for many - too many - months now, since the the nominal gold stock indexes broke down from a bear flag and lost support last winter/spring.
See? No loss of support and no reason for hysterics as a long as the higher low is in place.
http://www.biiwii.blogspot.com
http://www.biiwii.com/analysis.htm
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Okay, but in the spirit of truth in advertising, maybe an area chart is not the best way to go as it does not show the actual low to which the ratio declined in 2008.
A monthly candlestick chart shows the situation we have been operating to for many - too many - months now, since the the nominal gold stock indexes broke down from a bear flag and lost support last winter/spring.
See? No loss of support and no reason for hysterics as a long as the higher low is in place.
http://www.biiwii.blogspot.com
http://www.biiwii.com/analysis.htm
Subscribe to NFTRH or
Subscribe to the free eLetter
chart or no chart I doubt one can find a worse looking chart than that of the gold miners. Even today with the "risk-on" trade in full notion they are behaving incredibly poorly. Eventually your bullish outlook will prevail but "eventually" we're all dead anyways!
ReplyDeleteI am only bullish when the charts tell me to be. In 2011 I was bullish with an upside measured target that seemed (and ended up being) too good to be true. When the chart violated parameters, the swing was to caution and heavy risk management. I don't know what chart you are looking at now, but the HUI is no long bearish as long as it does not make a lower low to the May low. Of course, some people like chasing momentum. I hate it. HUI is just fine as of now.
ReplyDeleteAlthough another point to make is that the HUI is just an index made up mainly of large gold producers, many of which are quite faulty companies. Being selective on individual gold stock names is IMO the way to go. Very selective.
ReplyDelete