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Along with this chart there are some extremely interesting points to note regarding the action. On Friday we saw the jobs number in the US accompanied by the usual smash in gold and silver. This was also accompanied by a plunge in stocks.....
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But remarkably the HUI and XAU gold mining indexes closed positive and very close to the highs of the day. KWN readers have to keep in mind that this took place with gold down over $20, silver down roughly 75 cents, and the Dow down over 200 points.
There seemed to be a flurry of buy orders that steadily came into the mining shares at approximately 12 PM (EST). With about four hours to go in the trading day, everything turned around, and by end of day the miners had closed positive.
This was very bad news for the gold and silver bears because the mining shares have been leading the action in the metals for some time now. Below is the chart that acclaimed trader Dan Norcini sent exclusively for KWN readers, which shows a ‘Bullish Flag’ in the HUI mining index.
The strength in the mining stocks may have stunned the gold and silver bears as big money was aggressively accumulating shares in both the XAU and HUI on Friday. This does not bode well for the bears if this action continues. While we may see a bit more weakness in gold and silver to start next week, the metals may be set to turn around very quickly if the mining indexes move to break out of this formation to the upside.
KWN spoke with Norcini about the importance of this key chart as well as other crucial factors impacting gold and silver going into next week. His interview in the KWN Weekly Metals Wrap is available now and you can listen to it by CLICKING HERE.
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
The interviews with Rick Rule, James Turk, Egon von Greyerz, Jean-Marie Eveillard, Bill Fleckenstein and Art Cashin (UBS $612 billion) are available now. Also, be sure to listen to other recent KWN interviews which included, Jeffrey Saut (R.J. $360 billion), John Embry, Gerald Celente and Rick Santelli by CLICKING HERE.
Eric King
Incredibly Key Chart, This One Worries The Gold & Silver Bears
With the smash which took place in the gold and silver markets on Friday, below is one more incredibly important chart for the gold and silver bulls. King World News spoke with acclaimed trader Dan Norcini, who provided this chart exclusively to KWN.
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
October 20, 2012
