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-- Posted Thursday, 22 March 2007 | Digg This Article
One after another, the various signals are turning bullish for the Precious Metals and Resources. As more and more analysts turn from their bearish stance of two weeks ago, changing their outlook now, and advising their clients to hop on the train, in the process they will be causing the move to pick up speed. The following charts – courtesy of www.stockscharts.com
Featured is the daily bar chart for the electronically traded gold unit GLD. Notice the clearly defined up-channel. The green vertical lines are buying opportunities. The target is determined by extending the current move till it intersects with the red resistance line. Full speed ahead!
Featured is the index that compares the HUI index of unhedged PM stocks to the POG. Today this index enjoyed its best move in months, as it moved back up above congestion. This chart action tells us that PM stocks are finally indicating to gold bullion that they wish to join the up-move. There is lots of room until this index meets with serious resistance. Full speed ahead!
Featured is the broadly based Gold Miners Index, daily bar chart. This index has risen the past 5 days. The 6 month support line is rising. The green vertical lines indicate buying opportunities. The red line indicates the area where traders will likely take profits, but this is probably several weeks away, and at some point I expect this line to be overcome by demand, as buyers begin to outnumber sellers. Full speed ahead!
Featured is the daily bar chart for the electronically traded silver unit, SLV. This is a very bullish chart. The channel is well defined, the 50DMA and 200DMA are in positive alignment, and price has overcome resistance at 130 (bullion at 13.00). The target for this move is 16.50 (green arrow). Full speed ahead!
Featured is the daily bar chart for the Amex Natural Gas Index. Another very bullish chart. For several years North America has used more natgas than it has produced, and one of the solutions to overcome this deficit, would be the importation of LNG (Liquefied Natural Gas). The environmentalists are opposing the building of LNG ports however, to wit Chevron has cancelled its plans to build such a port off Mexico’s coast, near the US border, due to environmental opposition. Full speed ahead for natgas! Al Gore’s testimony on Capital Hill today reminded me of events that took place 30 – 40 years ago. The scientists then were warning us of the coming Ice Age. For those of you who are interested in an excellent article on the subject of Global Warming, I invite you to visit www.google.com type in: “Global Warming, the cold hard facts” . You will find there an article written by one of Canada’s top climatologists, Dr. Timothy Ball. “Instead of Congress investigating oil company’s excess profits and so-called ‘price gouging’, (no such thing in a free economy), which will not produce one additional ft/lb of energy; the government should be investigating why no new refineries or LNG terminals or Nuclear Power facilities have been built in the USA during the past 30 years” ….Aubie Baltin
DISCLAIMER: Please do your own due diligence. I am not responsible for your trading decisions. Peter Degraaf is an on-line stock trader with more than 50 years of experience as a metals trader. He issues a weekly alert to his many subscribers. For a 60 day free trial, contact him at ITISWELL@COGECO.CA
-- Posted Thursday, 22 March 2007 | Digg This Article
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