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This week in gold

Jack Chan
written May 16, 2007
posted May 17, 2007

The gold sector remains on a sell signal since April, and prices continue to deteriorate.

$HUI - is now below the 200ema support and oversold.

$XAU - also below the 200ema support and oversold.

GDX - like both $HUI and $XAU, closed below the 200ema support and oversold.

XGD.TO - the Cdn gold ETF is deep below the 200ema support and deeply oversold. A bearish cross (50ema crossing below 200ema) is about to occur, which means XGD will soon slip into a bearish configuration, at which time set ups to short can be initiated.

The gold sector continues to bleed from our April sell signal but is deeply oversold and can bounce sharply at anytime. As always, we will only enter the markets when we have signals, set ups, and stops. Otherwise we remain in cash and out of harm's way.

Disclosure: We do not offer predictions or forecasts for the markets. What you see here is our simple trading model which provides us the signals and set ups to be either long, short, or in cash at any given time. Entry points and stops are provided in real time to subscribers, therefore, this update may not reflect our current positions in the markets. Trade at your own discretion.

End of update

May 16, 2007
Jack Chan
email: jack@simplyprofits.org
website: www.simplyprofits.org

321gold Ltd