moving forward - back of the envelope numbers., page-3

The following is relevant imo.

As one of the world's leading gold equities, I think it is reasonable to suspect that NCM is being attacked and has been part of the buy paper gold, hedge by shorting gold shares play just like other leading gold equities in the world. Today's price action just adds to my suspicions.

Dan Norcini had this to say:

"One brief note about the action in the HUI in Monday's session. Once again it has pushed right up into a very stubborn and formidable chart resistance level near 580. It has had trouble dealing with this area since May of this year. Going back to the beginning of the year, it had managed to briefly penetrate the level but spent spent less than a month above it before succumbing to selling pressure and failing to hold its hard fought gains. If it can clear this level now, and if it can hold those gains going into the end of the week, then we should have something to hang our hats onto from a technical perspective. If it sinks back down away from 580 again, it will just further reinforce how significant this level is becoming on the charts. Apparently, there is a lot of pain coming to short sellers if some of the shares rise much further from today's levels and they are making a concerted effort to prevent that from happening. Any further move higher in gold is going to complicate their efforts immensely."

Dan Norcini at http://traderdannorcini.blogspot.com/2011/08/gold-4-hour-chart-update-and-comments.html