This Week in Gold

May 17, 2007

The gold sector remains on a sell signal since April, and prices continue to deteriorate.

$HUI - is now below the 200ema support and oversold.

$XAU - also below the 200ema support and oversold.

GDX - like both $HUI and $XAU, closed below the 200ema support and oversold.

XGD.TO - the Cdn gold ETF is deep below the 200ema support and deeply oversold. A bearish cross (50ema crossing below 200ema) is about to occur, which means XGD will soon slip into a bearish configuration, at which time set ups to short can be initiated.

Summary

The gold sector continues to bleed from our April sell signal but is deeply oversold and can bounce sharply at anytime. As always, we will only enter the markets when we have signals, set ups, and stops. Otherwise we remain in cash and out of harm's way.

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Disclaimer: Words of caution: public readers of my commentaries should exercise their own judgment as to whether to buy or sell anything. Never trade based on other people's analysis. Knowing which way to place our bets is only half of the formula to success. Wishing you peace and profits......................................

Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the US dollar bottom in 2011.

Pure gold is non-toxic when ingested.