Gold's Technicals Get Better!
Stewart Thomson
email: s2p3t4@sympatico.ca
Aug 17, 2010
Excerpts…
Here's a look at the GDX Daily Chart. Note the head and shouldering action I highlight. While gold bullion looks a bit "stretched" after the $75 upside party, the GDX, like silver, looks set to confirm the price action in gold. Should the stock market begin to rally, and my sense is it likely will do so, you could experience a fairly solid bout of cash register ringing on your gold stocks. The right shoulder is higher than the left, indicating a strong situation, and the head and left shoulder are now morphing into the head of a larger and more symmetrical H&S, another positive sign! Here's a look what I mean on a 2nd GDX chart: GDX H&S #2
You want to be a buyer of all gold stock weakness; don't clown around here, because the hourglass held by the gold bear clowns is running low on paper money sand. Drive yourself towards a focus on the juniors….
Let me repeat with a nuclear powered foghorn, what almost nobody (other than juniors stock supertrader GoldLion) in the gold community is clueing into: A mountain of back-breaking work has been put in by all the stakeholders of many juniors operations, over many many years. The results of that work are about to rise up like a golden volcano!
Regardless of any selloffs that will occur going forwards, in the juniors as a group, you are going to start to see "takeover mania", as well as "positive announcements affecting the stock price mania". Individual juniors are starting to see their stock prices jumping on drill action and news action. That is the theme of gold juniors here and now, and it is highly likely to dramatically accelerate over the next 6 months!
