it looks to me like wti is putting in a h&s top. it has tested the neckline from underneath and is coming back down
this could be good for the miners. also keep in mind the sanctions were put on gold by india to reduce trade deficits. their largest trade deficit comes from oil. so, this could lead to easing /removal of import restrictions. modi leads in the april elections . he is gold industry friendly
this pullback was to be expected. now we see if it holds support. if it is the bottom, then a process could develop. i dont see the drivers highlighted @ this point.
i am and continue to be cautious. last year january was a good month, and then it all started falling apart from february onwards.
although this bottom looks promising, it is yet to prove the bottom is in. i am sitting w/some cash and waiting. there is compelling values in this sector
dharma
dharma:
Yep on the WTIC! I follow both $GOLD:$WTIC and $GOLD:$CCI RATIO Charts - these can give important clues on the "cost side" for the miners, i.e., both Gold and Oil climbing like 2006-8 is NOT a good set-up, IMHO, but after Oil fell to $35 in 2008-9 and Gold fell less - that was a much better set-up. I see WTIC near $80 minimum and perhaps lower. I also watch the YEN closely for clues on the direction for Gold, FWIW.
stubaby
