Gold Stock Bull

The HUI finally closed above our key resistance level of 353, albeit just barely. A beautiful ascending triangle has nearly completed and the RSI turned up nicely. We will still wait for next week’s open to confirm, but this very well could be the time we have been waiting for. If 353 holds, we don’t expect any resistance until at least 420. That move represents a gain of 20% and could happen in a hurry. But how about letting the chart speak for itself…

A few of our favorite picks for this upcoming ride include: AUY, BGO, FRG, NXG, and SLW. But we expect “all aboard” for this next move, meaning you could close your eyes, spin in circles and point at anything on a list of gold and silver stocks (unhedged ideally) and make out quite well over the next few months.

We will confirm our actions next week and post our positions for public scrutiny. So smile and enjoy the weekend. Good times are ahead!

It was a good week for precious metals investors, with the HUI climbing 23 points from 330 on Tuesday to our resistance point at 353 on Friday. The importance of this point can not be overemphasized, as this marks the fourth time in the last few months that it has proven to be a tough ceiling. It also marks the 38.2 Fibonacci resistance level. The HUI closed up 1.2% today, despite strong employment data buoying the dollar.

To save our readers valuable time, we are going to start posting a “Gold & Silver Weekly Wrap-Up” like the one below. This will include a summary of the interesting articles, analyses and editorials that we’ve found across the web. An easy way to keep your finger on the pulse. If you want to suggest or submit an article, please do so here.

Eric Orlandini from Dow Theory Analysis writes…

I expect silver to really take off in September and at the very least test good resistance at $14.81. Furthermore, I expect it surpass this level and more than likely reach $20.73 by March 2007.

Roger Wiegand writes that Silver is Ready to Ring the Bell and opines…

Silver supplies are tight and getting tighter. Powerful controlling authorities would have you believe silver remains plentiful. We say under-supply exists and it continues to get tighter. Prices must rise to accommodate needs. We forecast the completion of a near term market price correction in silver to be followed by a fall rally. Prepare your trading plan for silver as it resumes its rally and watch carefully as silver is viewed less as an industrial commodity and more as a currency and investment safe haven for traders and investors.

The Real Deal brings an interesting angle, stating Silver Wheaton to benefit from Goldcorp/Glamis merger.

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