Monday , 25 September 2017


Gold Mining Stocks Have Signalled Still Lower Prices to Come

While gold is still maintaining a long-term consolidation, gold mining stocks havegold mining signalled still lower prices to come.

So writes Carl Swenlin (www.decisionpoint.com) in edited excerpts from his original article* entitled Gold Mining Stocks Still Negative.

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Swenlin goes on to say in further edited excerpts:

Physical Gold

A quick look at the weekly gold chart shows that the metal is holding above a line of support that goes back over a year.

Gold 5 apr 2013

Gold Stocks

In contrast, the XAU (gold mining stocks) has formed a bearish head and shoulders pattern, which executed when price dropped below the neckline earlier this year. We can see that the breakdown was followed by a brief snapback before the decline continued. At this point the minimum downside target would be the support line drawn from the October 2008 low.

Xau 5 apr 2013

It would be useful to note how dissimilar the two price lines are. One would think that the stocks would be closely related to the metal, but the charts will quickly clear up that misconception. (Prices are intraday.)

Conclusion

While for the time being gold has bounced off long-term support, the XAU has signalled that there are still lower prices ahead for gold mining stocks.

Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.

*http://blogs.decisionpoint.com/chart_spotlight/2013/04/20130405cs-2.html (Copyright ©1992-2010 DecisionPoint® All Rights Reserved)

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