Monday, July 28, 2008

Gold Spot and HUI index charts.



Gold spot has closed above the resistance line the high made in 1980. It has retested it successfully as a support line and also created a Pennant above it. Please note the prior move to the Pennant which looks like a straight line. This is one of the requirements of Flag and Pennants which are the strongest patterns in Technical Analysis. Once Gold breaks out of this Pennant, another move like a straight line would be expected. This will take Gold to $1300.

The same thing can be said about HUI index.




The HUI index has broken above the resistance line from 2006 and has retested it successfully.
It has also created a Pennant above this line. This is extremely Bullish for HUI index and the next target is 620 in this case.



Chris Narcouzi,
cnarcouzi@ne.rr.com

Chris has a BS in computer science. During College he instructed for two and a half years Calculus I trough Calculus IV, Differential Equations, Linear Algebra, Pascal Language, and Basic Plus Language. After graduation the college gave him an offer to teach these classes. Currently he is a Senior UNIX System Administrator and also a published Author on Technical Analysis. If you Google his last name, you will get a lot of hits on articles which you can download. His first article is On Support and Resistance Measuring Overhead Supply. He showed how to quantify support and resistance using volume.

Related tickers: (GLD), (IAU), (DGL), (GDX),

Comments

2 Responses to "Gold Spot and HUI index charts."

Anonymous said... July 28, 2008 at 9:17 PM

Hi,
interesting chart.How did you determine target price $1300? For me it seems to me more like climaxing now.

Rob

Anonymous said... August 8, 2008 at 3:51 AM

looks like now HUI has broken down from a one year long head and shoulders top. Assumedly, gold will follow down. It's hard to believe, but i think the bull is done. wish you had been right though.