BullMarketRun.ca

Gold is off $21 as of 7:00 am Pacific time this morning to $1,117 an ounce, after a strong move yesterday…we are of the opinion, however, that gold’s correction is nearly over and we note that the TSX Gold Index has largely unwound its overbought condition from a couple of weeks ago…we strongly believe the Gold Index will not drop below the 325 level, which is its 200-day moving average….currently it’s at 340, just above support at its 100-day moving average…the Venture Exchange is off 14 points so far this morning to 1426, but overall the CDNX holding up very well – its 20-day moving average is still on the increase – which tells us that, indeed, gold’s correction is nearly over and now’s the time to be buying into any weakness…the U.S. dollar is rapidly approaching 80 on the Index where it should run into severe resistance at its declining 200-day moving average and turn south again, lifting gold prices…at worst, we now see gold dropping no further than just under $1,100 where it has extremely strong support technical support around the October high…..