Wednesday, March 28, 2007

Quick HUI Update

Reasons for modest bullish bias:

1) Slightly higher high and higher lows

2) Consolidation around the 200 & 50 Daily moving averages.

3) PPO bullish crossover and RSI above 50.

hui gold bugs chart

See the latest gold chart


Saturday, March 17, 2007

$HUI Charts Update

Recently the HUI is zigzagging around the 50 and 200 moving averages, not much conviction and the trading opportunity is intraday if any. Note the RSI slight positive divergence, PPO trying to improve from negative territory.

HUI daily chart

On the longer time frame similar action trading range of 275 – 400 . Natural PPO and RSI.

HUI weekly chart

All in all still no clear sign of direction as far as I'm concerned. Be sure to check my XAU / XAG updates.

Tuesday, March 13, 2007

Mixed Bag

Well, I'm certainly not a general equity bull and hence not surprised of the recent (ongoing?) global equity market drop. I did also forecast a certain amount of weakness for metals, commodities and precious metals shares. So anyone following my posting got several warnings.

However when I examine the gold, silver, precious metals stocks and various ratio charts the picture is mixed.

Some bearish signs: major miners (which are heavily weighted into gold mining indices) Barrick Gold (ABX), Newmont Mining (NEM), Goldcorp (GG) are making new lows for 2007 and the charts look like they can slide lower. XGD the Canadian gold miners ETF, $XAU – both closed at a new low for 2007

Some bullish signs: The gold & silver charts do not look that bad (yet), the HUI continue to outperform the heavy hedged XAU. Some juniors are outperforming as Stacy M. Himes Posted.

I favor holding good long term gold, silver and precious metals shares positions, be in a wait and see position, do not capitulate! , do not seat and wait like a duck for your stops to be taken, don't be shy to take partial profits, If you can't stand the volatility then decrease your positions.

Good Luck

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