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Gold Stocks Are Getting Bullish - Andy Emerson(7/27/06

Submitted by Andy Emerson on Thu, 2006-07-27 07:20.

Gold stocks are starting to get bullish !!! And I'm starting to get really bullish but I'm still going to be patient. I have a good position but I don't want to chase anything here and will wait for a breakout now to add on. The breakout is going to be the upper trend line on the HUI (drawn below) and the same on the XAU. I feel the gold stocks will have resistance here and should pull back a little then trade sideways for a couple of weeks.

Something else that's really important is that the bollinger bands seem to always come together before a big move!! Well, if this trades out accordingly, we'll have the bollinger bands together which will give us a great place to play a breakout and get fully invested safely!!!!.

Once again, the upper trend line should be resistance. We'll probably get a dip back down in a week, which could be a place to add a few shares. But before I add on I've decided to wait until the actual breakout and to let the bollinger bands tell me something is about to happen. This is probably the safest way to play it.


Here are my favorite gold stocks right now. If I add on it will be in these few when I feel we are about to see a breakout. All of the these have shown great relative strength on the major pullback and all are holding up well. The short term charts look very good also. I feel these stand a better chance of giving us the highest returns if all goes well compared to NEM, ABX (heavy weights). I'm invested in all the gold stocks I cover but I'm going to take a slightly larger position in the smaller growth companies.

AUY


NXG


TGB


KGC


CLG


Others that look good at the moment!!! AAUK, GLG, BGO, TRE, EGO, GFI, IAG, HMY, AEM, GOLD, NEM etc.

Andy

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