1/20/2010

Gold Stocks Update

This is an update to my previous bearish analysis of Gold and Gold Stocks (ABX) from November, 2009. Many gold stocks broke through uptrends today (subject to closing prices), so conditions are looking good for further downside.

012010_abx_daily

This is an updated ABX chart. Notice that price has broken through a multi-month ascending wedge today. I wouldn’t consider a downtrend fully under way until prices break below $34.50. My plan now would be to move my stop to $48, and if prices break below $34.50, move my stop to $43.

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