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Comments for Traders of Gold and Silver Mining Stocks

Technical observations of

Bob Hoye
Institutional Advisors
ul 21, 2006

Most of the gold and silver mining stocks have now had either a correction of 10% from the July high or retraced 40% of the rally from the June bottom. This is in keeping with normal selloffs following:

  • bearish divergences in gold vs the XAU
  • test of the upper volatility band
  • RSI(14) readings in mid 60's on first rally off a capitulation bottom

We should now look for gold and mining stocks to box themselves into a trading range over the coming weeks.

A gold rally back into the $650s is likely.

-Bob Hoye
Institutional Advisors


Hoye Archives

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