I like gold, and it’s important to be aware of the negative divergence that’s going on right now between price and RSI. I’ll be watching to see how we react when we hit the 1270 area and see if it proves to be an area of resistance. If we blow right through it we’re heading much higher. If gold gets rejected at this trendline then we could be in for a period of consolidation or possibly a pullback.

The latter seems unlikely given how strong the overall trend of this 2yr chart is. Here are a few of my favorite gold stocks based on relative strength:

AU BVN EGO GFI GG GOLD IAG

GOLD

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One Response to “Solid Gold”

  1. Gold Pullback on Track Says:

    […] wanted to revisit my previous analysis of gold and where I thought a gold pullback could occur. I’m only going back to look at this to show […]

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