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on a very short term time frame that should resolve to the upside. Here's a 1 month candlestick 60 minute intraday chart thru today's close:
Some more potential bullishness based on historic data for those interested. Check out this 26 year monthly ratio chart of the $XAU mining index divided by the Gold price ($XAU:$GOLD) thru today's close, which tells us when senior blue chip Gold miners are "relatively cheap" compared to the price of Gold:
I don't know if history will repeat, but remember, Gold stocks can play "catch up" to the Gold price in a hurry. If we're in for a repeat of the 1987 or 2002 experiences in the Gold mining sector, here's what we can expect (26 year monthly price of the $XAU Gold mining index follows):
We'll see what happens, but I wouldn't bet against the Gold miners or Gold price over the next 4 months!
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3 comments:
Peter Grandich--jrs.
http://watch.bnn.ca/market-call/november-2009/market-call-november-5-2009/#clip231575
http://watch.bnn.ca/market-call/november-2009/market-call-november-5-2009/#clip231576
used-
Thanks for the links!
Adam, you really need to get your technical analysis together. On the first chart in this post (GLD) you have a falling 14 period RSI and the MACD (12,26,9) has crossed to the downside and on the Nikkei chart you published in a later post, you have the same technical pattern. I don't understand how you can claim that Nikkei looks bearish and GLD looks bullish. Obviously both of those charts are bearish.
I've been analyzing your charts for a while and out of respect for you and your blog, I have to say that you need to have another look at the basics of technical analysis (or get rid of your bias for gold and real assets). Claiming that the same pattern is bullish on one chart (gold) and bearish on another (paper assets) is a problem that you have to work out. Your blog seems to have a lot of followers and it would be a shame if some of those who didn't know as much about technical analysis took your word for it. From where I stand, your "gold vs. paper" stance seems to have corrupted your chart reading skills. I don't mean to insult you, I'm just pointing out the obvious. Your chart reading skills failed you during the summer months, when you predicted another plunge, which didn't happen. Unless you deal with your mistakes, you are going to end up like Prechter who predicts a crash every few years (the sad thing is that he was right last year and now there are a lot of people who trust his analysis, even though he is just a broken clock, right twice every day).
Good luck with your chart studies!
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