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This Week in Gold

Technical Analyst & Editor
May 24, 2007

The gold sector remains on a sell signal since April.

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

$XAU - consolidating at the 200ema.

GDX - has found support at the 200ema.

XGD.TO - the Cdn ETF is deep below the 200ema support and deeply oversold. The daily configuration is now bearish and any rally is considered corrective as long as 200ema provides resistance.

Summary

The gold sector indices and ETFs continue to be oversold and can bounce sharply from current levels. However, we will remain in cash until we have a signal, set up, and reasonable stop.

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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, 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.


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