Friday, 7 September 2012

Gold Stocks Break Out

A good review by Adam Hamilton of "Zeal Research", seeing the gold stocks breaking out.....more....

When a sector in a secular bull with amazing fundamentals crosses back over its falling 200dma after a major correction, it is supremely bullish.  The last similar event occurred way back in early 2009, during the stock-panic recovery.  Once the consolidating HUI broke decisively above its falling 200dma, it surged from around 300 to 600 in the subsequent couple years. Gold stocks doubled after that similar breakout!

Could they again?  Could the HUI’s next major upleg ultimately carry it from around the recent 450 levels to over 900?  Absolutely, it isn’t even a stretch. And the reason is because gold stocks remain so anomalously cheap relative to prevailing gold prices.
Well worth reading the full article.

Here is the ZJG.TO - BMO Junior Gold Miners ETF meeting its 200d avg

1 comment:

  1. Its looking good and well written about Gold Miners ETF Thanks for share with us