All That Glitters
The Gold Miners have have seen a rather dramatic change of fortunes, and as such, we thought we ought to take a special look at them and the Dollar.
DXY: The Dollar fell hard, and that was part of the driving force behind Gold and the Miners.
DXY: Note the lower target. I can't tell you how many times we've seen long term targets hit and trigger an important reversal. I'd be lightening up on my golds when we hit Doug's LT target.
DXY: Another view of the Dollar suggests that it's not a good bet as yet.
HUI: All the chop in the miners may have lulled folks to sleep...there's a big bullish pattern building here, if it confirms...
HUI: We can see that all the chop has made this index unclear at the moment.
GOX: The possible Head and Shoulders pattern could be a major issue for the Gold Index too. Of course, it's not a H&S until it confirms, and it hasn't.
XAU: The XAU has a H&S-looking pattern, too, but break it up and we've got more upside by my read.
NEM: Newmont could have a nice move if it can break to the upside. Doug thinks it needs to consolidate a tad for energy to build and I can buy that.
HMY: Harmony has been argued to be one of the highest quality gold stocks in the world. It's acting a bit that way.
Summary:
I would say that the Golds have got some longer-term potential so long as the Dollar remains in a down trend. Rising Oil prices may also trigger a run into the precious metals. In any case, I am still a long-term Bull on the Gold Mining stocks, though they may not go straight up in the immediate term.
Be Well, and Trade Smarter Than the Average Bear!
Mark, Doug, and Holly
-The ChartSmarts Team
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