Loading ...HUI:GOLD Ratio
Got this message from a member…and I agree
You might want to have a look at both the XAU:Gold and HUI:Gold charts.
Both look bad for 2020ytd and both are poised for big moves down. Either
the miners mount a big rally this week, or I am afraid things are going
to get very bad in the short term
So is this Ground Hogs Day again….Head and shoulders tops on both?
I bought some DUST last week for a day until the next morning then chickened out!
It really didn’t do much good anyway unless I bought about 50,000 shares.
But I couldn’t stand the pressure! 🙁
A few exceptions WPM, Barrick & FNV for the time being? FNV looking OB atm? I said it before the DXY is approaching 100…….Ag needs to get off the Matt. IMO opinion I wanna see KL put in a floor here and a nice consolidation maybe a W? I got no words for AEM Yikes……..I also want to see the EUR get a pulse fwiw.
KL? Been watching it like a hawk!
It looks like it might have finally found support? Up nice on some of the up gold days but then not all of them so much.
It does seem to be an indicator…….
It went down so far so fast I’d like to see a decent consolidation and a W.
I tend to agree with other people’s opinions but with somewhat different shadings.
First, I like these ratio charts[1] too — they are a lot of fun — but what counts is what one holds. Unless there is a ratio ETF, these are at best guidance and entertainment.
Next, before we get too unhappy, we should note that the overall trend is UP. The ratio goes pretty far down and the trend is still UP. If the trend were a good solid stock, you’d worry about buying it now what with its behavior with the 50 day moving average, and for the short term you might even want to sell if you felt you were overexposed. On the other hand if you had a ton of cash you might want to buy a lot of it if it started playing around the 200 day moving average. It could go below that and still be buyable on chart pattern (again, if it were the stock of a decent company).
If it were the stock of a super company and I didn’t like trading in and out I might not sell even if there were a well-formed head and shoulders pattern without an up trend. Here I am not so sure about how clear the formation is (I’ll leave that to others), but I wouldn’t put too much faith in it in the setting of a general rise.
As always, one would want to look at multiple time-frames.
One of my main reasons for being edgy has nothing to do with chart patterns however. It’s just that gold prices tend to swoon just as the PDAC starts. That’s pretty soon isn’t it? I am tentatively planning on lightening up in about a week for that reason alone.
([1] Yes, I realize that all prices are ratios but in a trivial sense, ounce per dollar, share per yuan, etc)
dollars per ounce, yuan per share.