Bullion Charts and Commentary
posted Mar 11, 2006 at 09:52PM
Agressive short-term traders were buying brand-name beta stocks on Friday on the basis of Fib support, bottomed out stochastics and trend-line support on the HUI/Gold ratio as well as the positive divergence of stocks on Friday morning. Tight stops and primary plan is to bail on the retest of the 50 dma on the HUI, unless something "big" happens.
Those looking for more strategic longer term positions are most likely remaining on the sidelines or consigned to sweating out the retracement. This on the basis of impending IT sell signals on weekly charts, and the break-down below the 50 dma on the HUI/Gold Ratio, the HUI itself. As well the XAU/Gold ratio remains on a sell.
If I had to commit to a prediction I would say "bounce" followed by some more downside.