Thursday, March 22, 2012

Topping pattern vs. sentiment (and support)

We have talked about the topping pattern on the HUI/GDX, which everybody sees on the weekly charts.  We have talked about all sorts of other ingredients to the current stew, first among them being suicidal gold sector sentiment.

Which will win out, increasingly supportive (contrarian) sentiment or the topping patterns?  Well, here is another view of New Gold (NGD daily chart shown the other day) from a weekly perspective.

Sometimes looking at individual situations can be interesting.  That is a truly frightening looking pattern (breaking the neckline), but there is also major support and a trend line at 9.  The pattern targets 4 and the support indicates a potential buying opportunity at 9.

I am not going to sit here and pretend I know which will win out with NGD, just as I don't know for sure about HUI/GDX.  There's that pesky 'he often says "I don't know what's happening" issue again.  :-)

But I don't.  So I sure am interested to see if coming realities meet up with current probabilities and expectations.  That's for sure.

1 comment:

  1. Looking at that chart, I was reminded by last year's Atac collapse, and wondered "hey... did GT see a topping pattern targeting $3?"