HUI/NEM/XAU's Short Term Downtrending Channels
After an initial 4 dayish dramatic nearly vertical plunge, the major downcycle since 9-6 for HUI/XAU and since 9-5 for reliable lead indicator NEM has settled into a fairly well defined downtrending channel, see
http://finance.yahoo.com/q/ta?s=%5EHUI&t=3m&l=off&z=l&q=c&p=&a=m26-12-9,p12,fs,w14&c=. Once/if HUI/NEM/XAU's channels are broken to the upside one can look to (key words) trade long. I said once/if because they could break below those channels in a final capitulation phase of Wave A for HUI/XAU and for what now looks like it could be Wave C for NEM (or NEM may put in a modestly lower cycle low in Wave C), since it fell to 42.20 today, fairly close to it's Secular Bull Market/very long term upcycle trendline at 41ish, see the first chart at http://www.joefrocks.com/GoldStockCharts.html.
A vicious multi week decline, similar to the one that occurred from 5-11-06 until 6-13-06 for HUI/NEM/XAU, began on 9-6 for HUI/XAU and on 9-5 for reliable lead indicator NEM. Wave A of this major downcycle since 9-6 may still be in effect (may last a few more sessions). Wave B up of the major downcycle since 9-6 might last over a week, Wave B in the prior major downcycle from 5-11-06 until 6-13-06 did, then it's time for the final Wave C down and another brutal decline for HUI/XAU, in which Wave A of their Cyclical Bear Market since 5-11-06 bottoms, probably in the 100-110 range for the XAU. For recent action see http://finance.yahoo.com/q/ta?s=%5Exau&t=5d&l=off&z=l&q=b&p=&a=m26-12-9%2Cp12%2Cfs%2Cw14&c=. ....... http://www.JoeFRocks.com/
HUI NEM XAU
http://finance.yahoo.com/q/ta?s=%5EHUI&t=3m&l=off&z=l&q=c&p=&a=m26-12-9,p12,fs,w14&c=. Once/if HUI/NEM/XAU's channels are broken to the upside one can look to (key words) trade long. I said once/if because they could break below those channels in a final capitulation phase of Wave A for HUI/XAU and for what now looks like it could be Wave C for NEM (or NEM may put in a modestly lower cycle low in Wave C), since it fell to 42.20 today, fairly close to it's Secular Bull Market/very long term upcycle trendline at 41ish, see the first chart at http://www.joefrocks.com/GoldStockCharts.html.
A vicious multi week decline, similar to the one that occurred from 5-11-06 until 6-13-06 for HUI/NEM/XAU, began on 9-6 for HUI/XAU and on 9-5 for reliable lead indicator NEM. Wave A of this major downcycle since 9-6 may still be in effect (may last a few more sessions). Wave B up of the major downcycle since 9-6 might last over a week, Wave B in the prior major downcycle from 5-11-06 until 6-13-06 did, then it's time for the final Wave C down and another brutal decline for HUI/XAU, in which Wave A of their Cyclical Bear Market since 5-11-06 bottoms, probably in the 100-110 range for the XAU. For recent action see http://finance.yahoo.com/q/ta?s=%5Exau&t=5d&l=off&z=l&q=b&p=&a=m26-12-9%2Cp12%2Cfs%2Cw14&c=. ....... http://www.JoeFRocks.com/
HUI NEM XAU
posted by Joe Ferrazzano at
9:30 PM
