Examining the world's biggest gold miners I noticed that the
recent selloff had taken two of them, Barrick and Australia's
Newcrest Mining back to their 2008 lows when gold traded at ~$700.
That's a 100% retracement of the upside move from the Oct-2008 low
to the Sep-2011 high.
GG has outperformed the other big caps by holding well above
its 2008 low of ~$14. It also had a strong rally off its recent low
at ~27, managing to close one of the two gaps in the daily chart
created in the most recent selloff.
--
The HUI index topped in Sep-2011 at ~12x its 2000 bear market
low of ~50. Gold topped at ~7x its bear market low. The HUI is
currently 5.6x its bear market low while gold is 5.3x. The run-up
in gold stocks from 2000 out paced POG and has now returned to
about par.
The HUI-Gold ratio has fallen to its 2000 bear market low of
0.2. It actually topped at 0.6 in 2004, travelling sideways until
2008 where it broke support commencing a decline to 0.2 in what
appears to be a 3 wave a-b-c move.
--
If gold can hold above $1450 over the next couple of weeks
then we may see bargin hunters move into under valued gold miners.
We saw some extreme volume on the recent deep selloff which may be
an indicator of a wash-out/capitulation.
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Gold Mining Stocks Bottom?
Posted by rixx on 28th of Apr 2013 at 09:29 pm
Examining the world's biggest gold miners I noticed that the recent selloff had taken two of them, Barrick and Australia's Newcrest Mining back to their 2008 lows when gold traded at ~$700. That's a 100% retracement of the upside move from the Oct-2008 low to the Sep-2011 high.
GG has outperformed the other big caps by holding well above its 2008 low of ~$14. It also had a strong rally off its recent low at ~27, managing to close one of the two gaps in the daily chart created in the most recent selloff.
--
The HUI index topped in Sep-2011 at ~12x its 2000 bear market low of ~50. Gold topped at ~7x its bear market low. The HUI is currently 5.6x its bear market low while gold is 5.3x. The run-up in gold stocks from 2000 out paced POG and has now returned to about par.
The HUI-Gold ratio has fallen to its 2000 bear market low of 0.2. It actually topped at 0.6 in 2004, travelling sideways until 2008 where it broke support commencing a decline to 0.2 in what appears to be a 3 wave a-b-c move.
--
If gold can hold above $1450 over the next couple of weeks then we may see bargin hunters move into under valued gold miners. We saw some extreme volume on the recent deep selloff which may be an indicator of a wash-out/capitulation.