Tuesday, April 9, 2013

Gold Stocks, is the selling over?

This is a clip from my Getting Technical Market Letter:

Interim Update April 8, 2013 GT1399

Gold vs. the Gold Producers: There is a possible bullish divergence setup between the price of gold (bullion) and the price of the large cap gold producers

A word on capitulation:

Emotional investors finally give up on a losing investment by selling at any price in an effort to get out of the market. This is usually accompanied by extremely high volume and sharp declines. It usually is indicated by panic selling.” According to Investopedia, the term is a derived from a military term which refers to surrender.

The Market Vectors Junior Gold Miners ETF (GDXJ) $15.26 appears to have experienced investor capitulation in early March. Note the low price and the high volume and the subsequent rebound of the money flow lines. Note the recent lower low and recovery accompanied by much higher money flow lines


sibeiho said...

Hi Sir,

Why is there a black and red line for your money flow index?

By the way what settings do you use for your money flow?

sibeiho said...

Hi SIr,

Why does your money flow index has a red line and a black line? btw what settings do you recommend for your money flow index?

sibeiho said...

Hi Sir,

Why is there two lines for your money flow??

Could you share what settings you are using for the money flow??

Gettingtechnical.com said...

Hello sibeiho

For money flow studies I use the traditional OBV and Accumulation Distribution - they are both price / volume studies but both differ in formula - I look for the both to move together to be a valid signal - if they diverge I ignore the directions- Bill C

sibeiho said...

Oic...cheers...i asked cause the saxobank platform i have do consist of a money flow indicator...but it differs from the movements of yours...

Thanks Sir!

sibeiho said...

oic...i asked cause my saxobank platform does have a money flow indicator...and it doesnt follow exactly yours...

Thanks Sir!!