Gold Stocks Outperformance Continue!

Friday, November 21, 2008 | posted by RedApple
, | with 0 comments »

With the Gold strength today, Gold stocks managed to continue its outperformance versus the S&P. The technical picture remains strong and well supported. The Ratio has broken the interim resistance at 0.1 and looking for 0.12 resistance from the down channel. Both MACD and RSI shows bullish pattern.



We have argued on our Nov 5 post (5 Nov 2008 - Gold Boom Doom - Gold Juniors more to meet the eye) that even though there may be reasons that the gold stocks are trading cheap, there are of good value especially since Gold stocks are undervalued versus Gold and Gold is breaking out by itself (21 Nov 2008 - Gold Boom Doom - Gold Breaking Out!) or versus S&P. Technically speaking, Gold stocks are consolidating versus Gold prices while RSI is confirming a possible bottom, we would like to see MACD confirmation before adding more to this trade.

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