Gold Stocks at an Interesting Juncture

It will shortly become clear whether there will be any follow-through buying in the sector – if so, then the action after previous lows of varying importance (such as in 1976, 1986, 1998 and 2000) will provide a helpful guide with respect to the move that can be expected in the short term (the immediate moves off these lows were all very similar in shape and size). The medium term outlook will only become clearer at a later stage – even if a strong short term bounce were to occur here, one cannot be certain that “the” low is in yet. One thing is clear though: the technical and sentiment backdrop is more than ripe for a playable rally.

Gold Stocks at an Interesting Juncture