Tuesday, March 26, 2013

Gold stocks continue to be weak

As the general market strengthens and the S&P 500 nears its all time highs at 1576, gold stocks continue to struggle.  

Here's a daily chart of the HUI Gold Bugs Index, notice the bear wedge pattern which I have been showing since Monday of last week.I'm not surprised to see weakness in gold stocks, however my question is, does the HUI make one more new low or simply retrace some of this wedge and form a higher low?

The second chart shows a daily chart of the GDX ETF, notice that it logically stopped at the May 2012 lows, remember in technical analysis broken support becomes resistance.  

No comments:

Post a Comment