Short-Term HUI EWA Count Update
posted Sep 21, 2004 at 06:54PM
The chart above was from the weekly update and is here for references puposes.
Today's action is shown below.
For all intensive purposes the breach of the 200 dma is as good a technical sign that a wave 3 has started as you can get. Some follow through tomorrow will also get through an IT trend resistance line..another bullish signal.
Despite what should have been a supportive Fed Statement the USD finds itself "clinging" to trend-line support. Break that and we have a measured move target to 86. Of course getting to 86 means breaking 87 a lot of H&S charts will start being displayed everywhere with measured move targets in the low 80's
So all in all it looks good for gold stocks...but reread the weekly commentary...this is still a "nimble" trading environment where things can turn on a dime, so good trading and risk mitigation practices are essential.