To 321gold home page

Home   Links   Editorials


Bob Hoye
Institutional Advisors
Posted Aug 9, 2010

The failed breakout of the ’Cup and Handle’ pattern in June coupled with the normal inability to produce a sustained rally beyond June produced a correction to initial support levels in July. Resistance is now anticipated in the range of $1219 to $1232.

The May 31st report looked for a high within 10 days (occurred June 18th) with a correction to the lower moving average band and an RSI <=37 (occurred July 27th).

Updated from May 31st

(Click on images to enlarge)

The June 3rd report identified the important upside Exhaustion readings in the Euro Gold price, looking for a minimum test of the 20-week average this summer. Once the 50-week average is tested it should allow the U.S. Gold price to stage its next major advance. The current oversold weekly readings on our Summation Index should allow prices to remain buoyant for two to three weeks.

The July 4th report outlined the failed ‘Cup and Handle’ breakout and concluded that ‘the break to $1197 created enough of an oversold condition to allow the market to bounce, permitting a retracement to as high as $1244 ($47 of the $1262 to $1197 decline). The upper Bollinger Band (20, 2) should become a formidable resistance over the next month as the band rolls over. It would take a definitive move through $1260 to negate the current distribution pattern.’ The initial rally was limited to $1218 followed by a decline to $1157. Prices have yet to rally to the Bollinger Band (currently $1219) or the 70% retracement (now $1232), but we assume they could be tested soon.


Aug 4, 2010
Institutional Advisors

Hoye Archives

The opinions 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.

Investors should note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Neither the information nor any opinion expressed constitutes an offer to buy or sell any securities or options or futures contracts. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investment mentioned in this report. In addition, investors in securities such as ADRs, whose values are influenced by the currency of the underlying security, effectively assume currency risk. Moreover, from time to time, members of the Institutional Advisors team may be long or short positions discussed in our publications.

321gold Ltd