Thursday, September 16, 2010

Gold Stocks - Update


A few weeks ago I posted about the bullish pattern that was taking place in the gold stocks index on the weekly chart.  Well since then this index (XAU) has broken out which is why is why I feel it's time for an update on this market.

As you can see the index has broken out of its symmetrical triangle and appears to be holding above the apex which is a good sign. If I am right about this pattern and we do get a rally, I am looking for the index to trade up to the 237 level which I marked off on the above chart. If on the other hand the index heads south, my protective stop would be around the 175 level.

For those of you interested in trading this pattern you can buy GDX or simply buy several individual gold stocks which are showing a similar chart pattern. 

2 comments:

Narayana said...

Kevin, and FYI: when I visit your site on Google Chrome, I receive a warning that it may have spyware:

"Warning: Visiting this site may harm your computer!
The website at kevinsmarketblog.blogspot.com contains elements from the site www.blogrankers.com, which appears to host malware – software that can hurt your computer or otherwise operate without your consent. Just visiting a site that contains malware can infect your computer.
For detailed information about the problems with these elements, visit the Google Safe Browsing diagnostic page for www.blogrankers.com.
Learn more about how to protect yourself from harmful software online."

Might be worth checking out.

Kevin said...

I'll look into it, Thank you

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