Bullion Charts and Commentary
posted Feb 25, 2006 at 04:38PM
From a big picture strategic "buy and hold" view, the Bush premium remains firmly in place and will continue propelling the bull market in the gold sector.
From a purely technical trading perspective I feel that the sector is in a condition where any last surge of bullion to 620, would be an opportunity to sell into strength. Any weakness into trend-line support should be bought.
I think explorer's is the way to go if you are looking to play another leg up. Something like OK.V for example, a reserve report story with good "potential", which has just bounced off trend-line support. (no I didn't buy it - I am basically tapped out...but in different circumstances I would have bought it)
Any surge here would bring daily charts in line with the weekly and monthly charts where technical conditions are clearly at overbought.