Sunday, September 30, 2007
Darth Vader, MIning Stocks?
Dear Readers, please look at the three important GOLD indices GOX, XAU and HUI, the are showing signs of exhaustion. They all are at the old high resistances, only XAU got new highs. Next Annual resistances ( Blue Medium DOTTED lines) are just passed or nearby and Decennial(RED DOTTED LINE) resistances are even higher. There was a substantial retracment too from the top( see tails on candles). Looking at Gold itself ( see chart two posts down), we see that we may need couple days to arrive at SELL signal, which could happen any which way by Mining Stocks just meandering a bit around here. Considering the run on $USD, we are either at a quick turn here, or a complete collapse of $US which will lead to GOLD to 800-900 area and Gold indices to new highs as shown by red solid lines above current prices. Stay tuned, this is shaping up as a week of destiny for $USDollar. In any case, I call the patterns in all three indices a "DARTH VADER PATTERN" Imagine these long candles like the sticks out of the Head of Darth Vader.
One quick Note: see the RED DOTTED line at 120(XAU) and at 287(HUI). Yes my dear friends this line at 121 was the one that allowed me to call the XAU support 11/2006, as a survival at the battle of STALINGRAD(VOLGOGRAD). Search for STALINGRAD in Safehaven.com