RUSSELL ON GOLDLet's check the gold picture. Below we see a weekly chart, and the chart should be encouraging for gold-philes. At the top of the chart we see that RSI has recently declined to about where it was during March-April 2003. That was just prior to the major advance that took place during the remainder of 2003. RSI, having bottomed, is now rising again.
At the bottom of the chart we see MACD advancing and close to crossing above its shorter term (thin black line) moving average. If or when a bullish crossing takes place, the blue histogram will rise above zero, and a bullish phase of gold action will begin. The ten-week and the 40-week moving average for gold come together at around 395-97. It would be bullish for gold if the metal can rally above both of these moving averages -- and move into the 400 area.
At the bottom of the chart we see MACD advancing and close to crossing above its shorter term (thin black line) moving average. If or when a bullish crossing takes place, the blue histogram will rise above zero, and a bullish phase of gold action will begin. The ten-week and the 40-week moving average for gold come together at around 395-97. It would be bullish for gold if the metal can rally above both of these moving averages -- and move into the 400 area.
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June 4, 2004
Richard Russell
Editor-in-chief - DOW THEORY LETTERS
www.dowtheoryletters.com/dtlol.nsfThe inimitable and venerable Mr. Russell gained wide recognition via a series of over 30 Dow Theory and technical articles that he wrote for Barron's during the late-'50s through the '90s. Through Barron's and via word of mouth, he gained a wide following. Russell was the first (in 1960) to recommend gold stocks. He called the top of the 1949-'66 bull market. And almost to the day he called the bottom of the great 1972-'74 bear market, and the beginning of the great bull market which started in December 1974.
