Gold's Broken 100D-MA, More Harm to Come? What About HUI?
- Weekly Chart - Gold has broken its "weekly 100D-MA" for the 1st time since 2008 and this is also the 2nd time this MA is being violated since the bull run from 2000. For the full view of 100D-MA support since 2000, see here: (http://tinyurl.com/ahxe78j)
- Taking cue from a pure technical perspective, gold price is indeed looking to head lower again soon.
- Daily chart - However, current level is also a major support from June - August 2012 period and this is the 3rd time gold price is testing this level critical level.
- Technical indicators from both daily & weekly charts remain negative with MACD heading down still!
- In conclusion - expect yet another critical move very soon to see if a decisive rebound or further weakness is on the card bearing in mind gold's important daily 61.8% Fibonacci level @ 1,626 level (from the top of 1,800 level).
- Not much to add here but one additional point that i have not mentioned before looking at HUI's daily chart.
- The double-bottom breakout in August 2012 was a valid one and the correction since September's peak could simply be viewed as the "reaction" from the breakout.
- In other words, the correction ensuing September's peak is simply a normal price action that could be seen after a valid breakout to find its final base before further rally to take place for higher ground!
- In conclusion - expect miners to carve its bottom with 380-ish looking to be a solid support on further weakness.
All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com