Sunday, February 08, 2009

Gold miners GDX: break out above MA200 - Bull is back! GDX, HUI, XAU, AUY, TNR.v, RMK.v,, BTT.v.

Finally Gold Miners are back into official Bull stage above their MA200. Technically it is very strong picture. GDX is breaking up after third retest of recent highs, STO is positive, MACD is turning up in a Buy cross over, RSI is confirming new highs.
Gold Miners are following gold this time and breaking up only now. We are in a position to see the change of leadership and important move up in GDX.
Gold challenging old highs is an indication that recent Irrational Delusion with strong US Dollar and Treasuries as a Safe Heaven is a minor historical aberration of a normal people' madness and that effective market theory can not stand test of a real life. Gold Miners are facing higher underlining Gold prices and lower cost with suppressed oil and commodities prices. It is time to raise capital as they are doing, but not because we are at the "important top", but because their future in the form of resources which now belongs to another companies are at the Important Low. M&A is the only way to survive and not become a prey. Companies are mining today grades which before 2000 were considered not more then dust. They need new projects to avoid production cuts due to lack of reserves. Here where Canada Venture CDNX and Juniors will come back into play.
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