Will August Be Friendly To Gold?
Gold and gold stocks, I’m
sure, are happy to see July leave us. In fact, both June and July have been rough
on this sector. As I look at the charts of gold stocks I see a common pattern
and it causes me to think August may be a little friendlier to this group. Below
is a chart of Harmony Gold
(
HGMCY |
Quote |
Chart |
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PowerRating). Here is what I see:
1) Long term up trend.
2) Key Fibonacci price
support from 8.88-10.05. This zone has seven price levels.
3) Two step pattern: According to the Elliott Wave following, markets trend in
five waves and correct
in three. This two-step
pattern basically highlights that corrective move.
So with price support and
a pattern on the chart, I believe HGMCY (and other gold stocks for that matter)
could see a resumption of the larger time frame uptrend. If this low that was
put in a few days ago sticks, then the first resistance levels do not come into
play until the 13.50 area, with a focus on 14.48-15.71 area.
Good night!