gold, page-95371

Gold stock sentiment indicator.
The most glaring of all the CPI numbers was the monthly gain of 0.9%, the highest in 40 years.
Have a look at how inflation and interest rates unfolded at that time.
When I estimate the target price for a stock I look at the initial move and strength of that initial move and apply a multiplication factor.
I hope this does not apply to inflation else it looks pretty grim.
.
While there have been quite a few trend casualties over the last 2 weeks, one that went only 2 days ago has risen over 20% today.
Reviewing target prices I found approximately 60% have now been reset with lower lows.
Many of the remaining target prices are over 100%.
Trend breaks allow those stocks to have a bigger run before hitting resistance, setting up bigger targets.
The current period is setting up to be a rather unusual but ultimately extremely profitable arrangement.
I am still able to take the odd profit and dig out the odd bargain - don't need may stocks to run >100% to make a portfolio look very healthy indeed.
.
Sentiment is falling further and I will re-evaluate how the trend may appear once this low is in.
It is Friday and can throw up the odd surprise.
I would be more than happy to see gold sit around US$1,850 level for a few days consolidation before having a go at next resistance around $1,860.
In the meantime A$POG now sitting around $2,360 and is climbing in stealth mode.
The AUD looking a little toppy. A decline here is in Aussie gold stocks favour.
Leading indicators have plunged to levels (below 30%) not seen since the 5/3/20 when gold was A$2,190 so this pullback is massively oversold.
Here is the indicator.
.