Friday, January 9, 2015

The gold complex – a pending trend reversal:

Just to review from a prior post - in order to technically claim a plot – such a gold - has a positive trend change we need a few conditions. First we need a recognised down trend which is a series of lower highs and lower lows. Then we eventually get a rally from a higher low – but the rally needs to break above the prior lower high (the pivot) in order to confirm a positive trend change. If this occurs on a daily chart we get a trade. On a weekly chart the pivot is higher – but you have to start somewhere.

The attached chart of the iShares S&P/TSX Global Gold Index (XGD) displays a down trend, a higher low and a pivot target – currently about $9.90 and so at to-day’s current price of $10.30 we are close if we hold here for another five trading days. Now most of the gold & silver stocks are satisfying this condition – AEM, AUQ, BTO, CG, DGC, ELD, G, IMG, K, MAG, NGD, NG, RIC, SSL, and SLW. The laggards are ABX, EDR, KGI, LSG, and OGC

Keep an eye on the XGD 200-day currently at $10.90 because a break above there would confirm a major positive trend change.

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