Technical observations of RossClark@shaw.ca
Possible brief correction - Gold was the big winner last week as it made all-time highs against the Canadian Dollar and Euro. In US Dollars it is above the broadening wedge (or megaphone) that has been developing over the past ten months. The initial action in such a pattern is to see the prices approach, but not exceed the high from which the pattern started. (Previous examples in gold occurred in 2002 & 1994.)
The XAU, HUI and XGD mining indices produced minor divergences by failing to confirm Thursday and Friday's strength in bullion. While this may seem very short term oriented analysis it was the same as the minor divergences at point 5 in 2002 and 1994.
Look for an RSI(14) reading below 40 to provide the next lower risk buying opportunity in this bull market.
Previous examples from 2002 and 1994
Gold qualifies as a bull market when priced in virtually any medium.
in this report are solely those of the author. The information
herein was obtained from various sources; however we do not guarantee
its accuracy or completeness. This research report is prepared
for general circulation and is circulated for general information
only. It does not have regard to the specific investment objectives,
financial situation and the particular needs of any specific person
who may receive this report. Investors should seek financial advice
regarding the appropriateness of investing in any securities or
investment strategies discussed or recommended in this report
and should understand that statements regarding future prospects
may not be realized.