Gold Stocks Update

Back in August I spoke about the bullish pattern that was forming in the gold stocks on the weekly time frame. Well since that post the XAU index has risen out of its symmetrical triangle pattern and is holding nicely around the 200 level.

As you can see in the above chart my upside target for the XAU index is the 237 area give or take a few points. The protective stop remains at breakeven but a move to new highs will cause me to raise my protective stop to just below this week's low. We'll see how things unfold in the weeks to come.