goldies up but not abu, page-13

POG up again in this recent trading range but this time it looked better by closing in the upper band of the range. Over the last week it has traded higher but closed back in the low to mid 1250’s-1260. Last night it closed at 1267. It is still within the recent trading range but more importantly it is also still comfortably above the breakout of the 12 month downtrend line and it has done so on the weekly as well. HUI also rebounded right off support of the last few weeks trading range with a 2.7% gain. GDXJ was up 5.1%.

Positive developments for gold began with the double bottom across a 6 month time frame. That was reinforced with the break of the short term Nov/Dec trendline. Now the medium term 1 year trendline has also been broken adding to the short term positive bias. Are we now climbing the “wall of worry”? Next trendline target would be around 1400 with initial horizontal resistance right near last nights close and then around 1350. You can draw all sorts of resistance lines or levels but I believe they will now continue to break until we see 1525 where the resistance will probably be more significant and it might take multiple attempts before breaking through that level. One step at a time, but for now the direction is up. First step is a close around 1280 to clear 1270-75 resistance. That could easily happen in the next overnight session as it will only take a $13 move. That would be significant as most commentators are looking at 1375 as important resistance and therefore gold stocks will likely have big moves if 1275 is taken out. Of course the next session might instead be lower again but a break soon is looking likely because of the way the price has been gradually rising and holding just below resistance rather than turning down sharply after reaching resistance.

"goldies up but not ABU" is the title for this thread. If 1275 is taken out, I would expect 3c to be taken out on ABU within a couple of days if not on the day. Then, considering the decent amount of time we have spent consolidating around 2.8-2.9, ABU is better set up for another strong move higher; IMO towards 4c.