Gold stock sentiment indicator.
Nice steady rise in POG over the last few days.
The weekly close is important as it is often used by technical analysts so a pullback before the close to just below US$1,800 is not surprising.
Was going to throw up the chart for GOLD but this has not changed since the beginning of December.
One chart that has changed is the XGD. Friday was one of the biggest days since May.
Here is the short term chart. Looking good and room for a pull back without damage.
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The XGD had a high of 6,420. Another 35 points and the chart below would have reversed. Quite possible this week.
Would validate the buy signal at 6082 and the support line.
Keep in mind the XGD is a weighted indice therefore reflects price moves of the largest market cap stocks the most.
Producers looking fine.
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The difference between the XGD and sentiment indicator is quite profound.
Sentiment is currently refusing to go higher, even after a decent day like Friday.
JUNIORS ARESTILL UNDER THE PUMP. Being day traded for short term profits.
Probably a reflection of a risk-off market and would require a breakout by POG aboveUS1,835 for money to flow into juniors and stay there.
I suspect we are in for a wild 2 weeks ahead.
If volumes are thin then the market could be easily pushed around.
Here is the indicator. Flat lining.
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