Memorial Archives

Gold Charts
posted Mar 26, 2006 at 03:54AM

Bullion Daily

Gold/USD Ratio

In a "Phase II", "Wave III" scenario I think this chart should be more closely followed than the USD itself. In this phase of the bull, gold will and can rise despite a stronger USD. I interpret this chart as bullish as long as horizontal support holds

HUI Daily

HUI/Gold Ratio

Notes: Not too much to add that wasn't said last week. The short term bullish case seems to be comng to pass as anticipated.

It is possible that the HUI will make a stab at recent highs but overall we are still in a consolidating environment. I still think that a triangle will be the pattern that gets charted out. I think it is very possible that the low end of the triangle has already been set. It makes a lot of sense to me that this trinagle, be an ascending one.

The overbought nature of the weekly and monthly charts does mean that you should protect yourself with stops for any new money you are putting in. Better to take a small loss and just look for another stock that "sticks", than risk that the sector do a complete "reload" on the weekly charts.

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