Loading ...Gold Price Up / HUI Down
Whatever the reason, and wherever they go next, the following is true. The HUI had progressed further than gold in terms of their moving averages. The HUI had powered through both its 50 and 200 week moving averages. Gold had been lagging. They have now ‘met in the middle’, quite literally. The HUI has retraced to a position between the 50 and 200 week moving average, and gold has advanced to get itself into the same position – between the 50 and 200 week moving average. One played catch-up, whilst the other retraced a little. Now that they are both in the same place with respect to their moving averages, what next ? Here are the charts for you to have a look at and ponder.
Perhaps they remain ‘trapped’ for a while, and the next significant move will be triggered by what’s going on in the US/Europe/China. If that’s the case, I have to remain bullish, because that’s a whole load of uncertainty and turmoil, and we all know how PM’s react to that. Eventually.
Excellent Northstar….The Debate has one more for the Bulls
Yep, for the time being at least. Looking at those charts from a purely mathematical point of view, I don’t see too much cause for concern. We get so used to seeing the miners move in the same direction as the metals (multiplied by a factor of 3 or more). Anything that strays from the norm can seem odd, but from a purely statistical point of view, the miners had got ahead of themselves a bit.
Wow! Great charts Washer, this could explain a lot about the miners languishing the last couple days with gold going up!
Nice ones Northstar.
I think we move up from around here and take out the neckline for the inverse h&s that is on many miners indexes, e.g. GDXJ.
I think the $USD is very close to give up this level.