Gold and Gold Stock Update

By: Jordan Roy-Byrne | Thu, Jun 3, 2010
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The following is a brief snippet of Wednesday's 16-page update. Go here for more information on our service and a free 14-day no risk trial.


Gold

Gold remains on track (as far as our template). Here is the potential bullish outcome. The longer Gold holds above $1160 and that trendline, the more likely the bullish outcome.

Gold

Sentiment remains supportive. See the GLD put-call below. Also, public opinion from sentimentrader.com is 69% bulls. Interim tops have occurred at 75% while significant tops at 85%. Consolidation for another month or two would leave public opinion near 60% bulls.

GLD


Gold Stocks

This is an interesting juncture for the gold stocks. There is enough evidence to make a case that the recent low will hold.

Note that the bullish percent index is at 45% (neutral to slightly oversold). Note that the 7-day GDX put-call is at a level consistent with bottoms. Note the put-call spike on Friday. Consider that gold stocks are performing well in real terms. Also consider that the HUI has twice recently held above both the 100 & 200 day-MA's.

Initial support is 425-430, with very strong support at 380-400. Initial resistance is now 470-475.

HUI

Here is the GDX put-call data we referenced above.

GDX

 


 

Jordan Roy-Byrne

Author: Jordan Roy-Byrne

Jordan Roy-Byrne, CMT
www.thedailygold.com/newsletter
www.trendsman.com

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