source:yahoo finance
Friday the HUI CLOSED at 147.78, with no end in sight for the downtrend that began in earnest on March 27th. Today the gold miners roared to life posting a 5.17 (3.50%) rise with a closing at 152.95.
I often go real old school in looking at the trend with Point & Finger charts (don't ask) that simply looks at price action. My old school indicators have just flashed a change in trend.
I have been following certain target levels for the past few weeks on the HIGH, LOW and CLOSE:
171.25
168.89
166.78
164.12
162.31
157.87
153.34
150.62
The HIGH today came in at 153.13 (-0.21 points) off the target level of 153.34. In short I think we will have a relief rally within the overall DOWNTREND.
I personally believe that this will be a change to the upside within an overall DOWNTREND. Lets face it we are in a "soft time" for gold and we still have the "Summer Doldrums" ahead.
In the Gold Futures Seasonal chart below notice how Gold does tend to rise in this part of May before declining in the Summer Months.
Just my little musings from the trenches.
Peace Out!