In response to a couple of very good questions from Mamare and Gallo, I’ve had a look at what we might reasonably expect from PM stocks if we see similar behaviour to 2009-2011. The first thing to note is that drawing the support and resistance is open to interpretation. However, the end result is much the same. We don’t really want the support line to be broken of course. That means the downside should be very limited. The stocks would be outperforming the metal if we see $1250-$1280 gold and the HUI support line holds. The upside is very big at this point. I’m using linear charts here, so if we get a ‘parabolic’ move developing at any point things would get even more interesting. At this point though I’m going to avoid getting carried away, and just focus on a move similar to 2009-2011. You need to remember that we have many more years of ‘bull’ to go (into the mid 2020’s), and we’ll get some ‘scary’ corrections along the way. This trend channel could be a good guide to get us going though. Here’s my two charts to ponder…