CHARTWORKS - AUG 6, 2009
Gold – Short Term Guidelines

Technical observations of RossClark@shaw.ca

Bob Hoye
Institutional Advisors
Aug 8, 2009

When Gold prices get off to a good start in August the initial rally generally lasts fourteen to eighteen trading days and tops out by the nineteenth of the month. Having bottomed at $925 on July 29th we project an optimum time window for an interim high by the week of August 17th. Corrections from the August highs retrace 50% to 70% of the preceding rally before staging the next leg on the upside.

It is now fourteen weeks since the US Dollar Index broke below its 20-week moving average. Dating back to 1986 we find that this is a common period of decline before consolidating or retracing to test the average. Additionally, our two fractal models that allowed for a test and possible minor undercut of the supporting lows of Dec ’08 and June ’09 now call for a rally towards the June highs.

As noted below, rallies in the Dollar back to the 20-week ema (currently 80.92) that produce RSI(14) readings into the mid 40’s present buying opportunities in the gold market. Keep these parameters in mind as we progress though the next month.

(Click on image to enlarge)

Aug 6, 2009
-Bob Hoye
Institutional Advisors
email: bobhoye@institutionaladvisors.com
website: www.institutionaladvisors.com

Hoye Archives

The opinions in this report are solely those of the author. The information herein was obtained from various sources; however we do not guarantee its accuracy or completeness. This research report is prepared for general circulation and is circulated for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized.

Investors should note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Neither the information nor any opinion expressed constitutes an offer to buy or sell any securities or options or futures contracts. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investment mentioned in this report. In addition, investors in securities such as ADRs, whose values are influenced by the currency of the underlying security, effectively assume currency risk. Moreover, from time to time, members of the Institutional Advisors team may be long or short positions discussed in our publications.

321gold Ltd