May 28, 2004
Technical observations of
Two weeks ago we compared the
decline in the XAU and HUI with that of the panic low in the
equity markets in 1987 and concluded that "Based upon
the wave structure we could very easily create a climactic low
in the HUI and XAU this coming week (May 10th to 14th)."
Prices bottomed on the 10th and have rallied 10 to 15%. We would
now anticipate this rally to retrace one half of the break from
the April 1st highs. The target for the XAU is 91.50 and the
HUI is 202.
Support on the next decline
should be encountered at the lower 75-day bollinger band.