   |
|||
Momentum indications still positive for the gold stocksClif Droke
snippet Below is an extract from Clif Droke's February Gold Strategies Review. So far the XAU and HUI indices are taking the path predicted by the internal momentum indicators several weeks ago, namely a volatile, bumpy path with a slight upward bias. I still expect to see XAU and HUI test their December highs but nothing is written in stone in this market. With 90-day internal momentum (GS HILMO) up through February and 30-day momentum expected to turn up next week, however, it should bring about the hoped-for rise in the leading gold stocks to higher highs. Day after day in the first half of February the XAU's cumulative volume indicator continues to register negative readings and the gold stocks just can't seem to make any headway. I don't think this is in any way a sign of a bearish market. After all, the dominant interim momentum gauge for the gold stock sector is still rising and this is a positive sign. If I had to pin the lagging performance of the XAU on any one thing, technically, I'd have to say it's the sluggish performance of 30-day momentum. On Monday, Feb. 12, the 30-day indicator, which has been in negative territory since mid-January and which reached a "zero" reading on Friday, dipped slightly into negative territory once again with a reading of -2. More follows for subscribers, you can buy the Feb Gold Strategies Review, which includes analysis of over 3 dozen gold stocks ($21) here. --Clif Droke 321gold |
