oops. Edited to fix links.
I see lots of talk recently about technicals in the gold market. Here's my take on the stocks, vis-a-vis the xau index. There's been nothing to see or say about this for a long time. It's been about as exciting as staring at a red and white bobber attached to your fishing line, sitting on the surface of a calm lake. With nothing doing. For years. Maybe now it's got a little wiggle going. Maybe a big fish is interested.
On the short term, 3 mo. time period daily chart we see positive action:
https://schrts.co/jHTVqejuStochasitcs gave a double-hook buy signal with fast crossing up over slow on Nov 14. Macd gave a buy signal for conformation on Nov 19. A moving average buy signal occurred on Nov 21 and remains in positive mode with price above both averages with both averages moving up -- the 50 day ma just turning up this week. The aroon14 switch to trend up with green crossing over red (final confirmation).
Yes, the stochastics are overbought but if this move amounts to much they should stay overbought for some time while the greatest gains are made. Looks like a two-leg advance with the first gaining 17 points off the Oct bottom and second gaining 20 points off the Nov low so far. A pessimistic view would see this area as a potential top. A mildly bullish view would look for the second leg to be double the first, making a pullback due around the 140 level.
Moving on to the intermediate, 15 month weekly chart:
https://schrts.co/UUqBktfNAlso positive action with fresh buy signals. The early signal was the stochastics, fast over slow first week of Oct with the bullish hammer candlestick bottom. The macd confirms this week as does the aroon14 and the moving averages with price getting above both averages which have also turned up (50 day in blue, barely). The three white soldier candles suggest more upside. The first target is 140 area of the Jan and Apr-May highs. A realistic target would be 60 points up, equal to the move from the bottom at 90 to the aforementioned tops. That's around 162. A bullish projection would be double that or 120 points up from 102 -- 222 (albeit with some minor pullbacks along the way). Note that this is not yet overbought, basis the weekly, with the slow stochastic just crossing the 50 level
A longer chart (3 year period, same weekly view):
https://schrts.co/fxNzVtKmNot much happening over 3 years with the long term moving average (blue line) almost flat sideways, slight downward bias over two years. Almost no sustained uptrends, green line over red on the aroon chart.
Like I say the bobber's been still on the water for a long time. Now just getting the slightest twitch. It looks like time to pay attention to this market. If all the fundamental analysts making bullish predictions could be right -- the price action is suggesting this MAY be the start of a sustainable up move. And the bottom is in at Sept '22 with a bottom above a bottom now in evidence over the long term. Wild ass gamblers should be in already at the bump off the 102 bottom. Trend following traders would say it's now safe to buy this market on dips. Good luck to everyone.