and perhaps a peek into the future...click to get the chart.
http://www.growthstockwire.com/2863/The-Best-Gold-Stock-Opportunity-I-ve-Seen-in-Two-Years
The Best Gold Stock Opportunity I've Seen in Two Years
By Jeff Clark
Thursday, October 20, 2011
We are approaching a "back up the truck" moment for the gold sector.
After yesterday's thrashing, the Market Vectors Gold Miners Index (GDX) is down 13% for the year. Meanwhile, gold itself is up about 15%. In fact, most gold stocks are trading at the same levels they were two years ago, when gold was $1,200 per ounce. So while gold has gained more than 33%, gold stock investors don't have anything to show for it.
That may be about to change.
Look at this chart of the Gold Miners Bullish Percent Index (BPGDM)...
This chart illustrates the percentage of gold stocks trading with bullish chart patterns. It's a measure of overbought and oversold conditions. Gold stocks are overbought – and subject to a correction – when the BPGDM rallies above 80 (meaning 80% of the stocks in the sector are trading in bullish technical patterns). The stocks are oversold when the BPGDM dips below 30. And the chart generates a buy signal when it turns higher from oversold conditions.
