-- Posted Wednesday, 14 November 2007 | Digg This Article | Source: GoldSeek.com
At 0730 NY time, November 8th, I warned my Premium Subscribers to expect a pullback in the HUI index, and probably in gold and silver as well.This was while articles abounded with price projections as high as $1,500/oz for gold.While I agree that gold is going to go to $1,500/oz (and higher), I communicated to my subscribers that a pull-back had to come first.
Here is the chart that I referred to that morning.
Featured is the HUI index chart from November 7th.The red arrow points to a downside reversal.The 3 supporting indicators (RSI, MACD and Histograms), had turned negative (purple lines).I suggested two targets to my subscribers, 420 and 400 (green arrows).
Next is the same chart at the close of trading on November 12th.
Price has since dropped for three days, and landed very close to the bottom target. At this point I was able to advise my subscribers that the pull-back was close to being finished, and in fact it ended the next day.By now the RSI is back near 50, and price was close to the 50DMA at 400, thus most of the ‘excess exuberance’ had been dealt with.
Next is the ‘here and now’ chart.
Featured is the HUI chart, as of AM November 14th.As long as the close today is above the ‘high’ established yesterday, the ‘bull is back’.As I have indicated in previous articles, the target for the current move is 490, (with pull-backs along the way). As you can see in this chart, the three supporting indicators are turning bullish again, (green lines).
DISCLAIMER:
Please do your own due diligence.I am NOT responsible for your trading decisions.
Happy trading!
Peter Degraaf
Peter Degraaf is an online stock trader with over 50 years of investing experience.He issues a weekly Email alert for his subscribers.To benefit from a 60 day free trial, contact him at ITISWELL@COGECO.NET or visit his website:www.pdegraaf.com
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