Wednesday, October 05, 2011

Double Bottom in Canadian Gold Miners?

5 October 2011

Unless this is worse than I think, the Canadian gold and silver miners have put in a double bottom against the gold price.

Both charts show the indices divided by the rising price of gold. This particular metric seems to have fallen far enough to satisfy most technical analysts!

The Canadian Venture Index divided by the gold price (exact double bottom?):

The S&P/TSX Global Gold Index divided by the price of gold (pretty much the same thing):

Of course, it can always get worse, but I can't think of any real reasons why this sector should continue to underperform in the current crisis-focused macro environment.

Onwards and upwards, my friend....

1 comment:

  1. It's a long, slow process, but the "double bottom" hypothesis is still being vindicated....