Gold's Broken 100D-MA, More Harm to Come? What About HUI?

By: William Yii | Fri, Feb 15, 2013
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Gold

  1. 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)
  2. Taking cue from a pure technical perspective, gold price is indeed looking to head lower again soon.
  3. 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.
  4. Technical indicators from both daily & weekly charts remain negative with MACD heading down still!
  5. 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).

Gold Spot Weekly Price Chart

Gold Spot Daily Price Chart


Miners

  1. Not much to add here but one additional point that i have not mentioned before looking at HUI's daily chart.
  2. 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.
  3. 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!
  4. In conclusion - expect miners to carve its bottom with 380-ish looking to be a solid support on further weakness.

HUI Gold Bugs Index Chart

 


 

William Yii

Author: William Yii

William Yii
AlphaOmegaHedge

William Yii

Alphaomegahedge is a financial blog that attempts to use the powerful tools of technical analysis plus the big picture of some important fundamental views in identifying major & intermediate trends of risky assets. My main focus are precious metals & miners, U.S major indices & Malaysia Equities.

Author is an equities fund manger who is currently based in Malaysia.

Rightly or wrongly, the views expressed on this blog are of author's personal opinion and shall neither serve as investment advice nor recommendation under any circumstances. All views are meant for educational purposes only.

Copyright © 2013 William Yii

 

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