A Chart Making The Rounds Says 'Why Buy Gold Stocks?' - Gary Tanashian

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Gary Tanashian is proprietor of Biiwii.com. Actionable, hype-free technical, macro economic and sentiment analysis is provided in the premium newsletter Notes From the Rabbit Hole (http://www.biiwii.com/NFTRH/subscribe.htm). Complimentary analysis and commentary is available at the 'Biiwii Blog'... More

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A Chart Making The Rounds Says 'Why Buy Gold Stocks?' 0 comments

Aug 3, 2012 10:48 AM | about stocks: GLD, IAU, GDX, GDXJ

According to this chart, the XAU-Au ratio has made a lower low to the 2008 low and thus has massive resistance above.
Okay, but in the spirit of truth in advertising, maybe an area chart is not the best way to go as it does not show the actual low to which the ratio declined in 2008.
A monthly candlestick chart shows the situation we have been operating to for many - too many - months now, since the the nominal gold stock indexes broke down from a bear flag and lost support last winter/spring.
See? No loss of support and no reason for hysterics as a long as the higher low is in place.
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Themes: gold, gold stocks Stocks: GLD, IAU, GDX, GDXJ

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