HUI & XAU

An update on the "rounding top" question raised several weeks ago. Brake out happened last week, but I waited till this week to see what it might look like. It appears that the indicator is turning back up. The question now becomes will it brake above the RED TL, or turn back down. Although am bullish on gold for several reasons, am not sure we will see a rapid rise above the monthly resistance (R2) on the monthly charts. We could "chop" around till the end of the year.



Comments welcomed,
mss

they had a gold show in vagas,could of pushed it up ?,the $$ stuck in a range.we need a brake in silver above 7.40 to move the gold stocks up.and gold is riding the back of oil...my bs...the xau, testing mar.high.and only some running.but.I'm still long some also. next gap to fill 110..it likes to help me for xmas ??

Hi mss,

"WHAT'S THIS??"

Well, to me it looks like not-all-that-bullish action from the low this spring. The move into the early 2004 top was powerful. Are we done correcting that big move? Maybe and maybe not. We've put in sufficient time (IMO) but the price retracement hasn't been all that much. It's been a frustrating market, bouncing around. The 15 or so months into this spring's low looked good for a completed ABC correction, but your chart doesn't show much power to the upside since.

Gold is not far from busting out to a new high, and if that happens then the mining stocks may roar, but I still think it's wait and see, for now. If we're still in an overall correction, then even just a Fibonacci .382 retracement would take us to the 3.60 area which looks darn good on your chart as a support area.

Doug

Hi mss,
Gold is not far from busting out to a new high, and--------------
------------ if that happens then the mining stocks may roar, but I still think it's wait and see, for now. 
Doug

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"IF" is the key word here. I am not nearly as "HOT" for a rally as some this year. Think maybe some nice gains and/or trades, but as of yet see no "rocket" up.

A little more volume on the Gold futures would make me feel more longish. uh

I think the battle lines are drawn -- could really be bullish, could still be in a long corrective phase. HUI to 240 and going above the downtrending upper trendline of the past couple years would look pretty darn bullish to me. Doug