Technical observations of RossClark@shaw.ca
Following the briefest of pullbacks (an RSI reading of 53.8 at 141.35 on April 11th), the XAU has moved through the recent highs, thereby removing the bearish divergence.
Initially, the current rally in the XAU should close within 1% of the closing high of 154.19 of January 31st .
There is a good likelihood of an 8 to 12 trading day pullback once 154.19 is tested.
Regardless of whether the market stages a pullback following a move to the January highs, the minimum measured upside target within two months is 168.
The unhedged (HUI) and junior stock indices (www.goldcolony.com) continue to outperform on the upside. Neither of these indices have enough history from previous bull markets to establish characteristics for measured targets so we'll just let the trends run until we see signs of ending action.
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