NEM Has Failed So Far To Fill It's Upside Gap At 43.78, That Was Created At Yesterday's Open
NEM failed late yesterday and failed again early today to fill it's upside gap at 43.78 from yesterday's open, which is a bearish sign that indicates a test of yesterday's Wave A cycle lows (NEM's was 42.20) is likely.
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, but keep in mind that Wave C of the major downcycle since 9-6 lies ahead. 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 yesterday, 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
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, but keep in mind that Wave C of the major downcycle since 9-6 lies ahead. 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 yesterday, 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
7:51 AM
