think tank, page-82

The sectors down ward pressure on ABU may be ending.

Before this fourth large up candle on the attached chart, there had been three previous ones reversing down legs within the medium term overall down trend.
Each of those reversed the previous 2-3 days of losses. Each one led to a multi week correction higher within that medium term down trend. In all three cases prices dipped the following day or day after that before climbing gradually higher again. I wonder if that is what our market was looking for on Friday when we failed to match the gains on the HUI.
We now have something different with this reversal candle. The most obvious and important difference is that this one has marked a significantly higher low than the prior low in June. All the others marked significantly lower lows so they all turned out to be corrections higher within a down trend. This one not only marked a higher low but it also follows a stronger preceding rally than the others where prices actually managed to break above the 50DMA and stay above it for a week. That last rally and this big move off a higher low are showing much better strength now. It is looking increasingly likely that we have seen a bottom for the medium term down trend.

US gold price has also reversed strongly higher and again is testing the 50DMA and has also marked a higher low. The fact that prices are not being pushed strongly back below the 50DMA resistance as with previous attempts has it looking more likely to break through soon.