seriously oversold, page-9

mchawe,

there was a formula regarding all PM stocks but since the recent carnage it's hard to fair value it. so many bad indicators for it and other stocks. look at ncm today. its breaking all over the place. at this stage it still says it want to fall to its next 2.25 support line then 2.15 ish. have a look at how its weakening today with the XMJ and how gold is going up from 858ish at the open.

this is bad because a fall to 846 on gold this week and a stalled recovery perhaps on the XMJ back to 13000 will see it fall to these support levels. Also since NCM has broken down and going to $22 or maybe $20 strong support in that are it may take LGL with it which is further evidence it may happen.

On the positive side the $US rally is going to halt any day soon this week as 0.76 is a resistance point, which will coincide in supporting gold and indian seasonal demand which kicks off this week or two. wait to see what happens around the 18th -20th august or maybe some news headlines coming out of china which will state a resumption to work and demand kicking off again. this may help the XMJ material stocks.

this is a very hard market to predict and LGL reports around the same time we are due for a turn around in commodity events. hope all goes well coz i'm looking for a rebound soon in this sector