Bobby:
I see some interesting technical events in gold, XAU, and the gold
stocks. In gold and the XAU, looking at them from the weekly
close basis, a short term moving average (10 week) had been
trending lower and below the 40 week moving average, SINCE JULY 1996.
This has already changed in a few leading gold stocks, e.g. Barrick
and is about to happen to gold (basis london gold closing price
weekly), and to the XAU. I.e, the 10 week moving average has in
some cases crossed above the 40 week averages, and is about to do
so for gold and the XAU, if gold and the XAU continue to rally for
a short time. This is reminiscent of the rally in March 1993,
the last really significant rally in gold, XAU and the gold stocks.
Also, the moving averages have flattened out and are turning positive.
While we might see a short term correction, it seems to me that
we have witnessed a major event.
Regards
Dan |
