Sunday, April 20, 2008

Canadian Gold Miners (XGD.TO) 1 year chart

Here is a 1 year chart of the Canadian Gold ETF (XGD.TO) which I use as my gold trading proxy. Its fairly liquid and its biggest component is Barrick Gold (ABX.TO).

Ive noted 2 separate trends, a longer term trend line since August 2007 and a shorter term sideways trend developing since early 2008. A critical element of this chart is that the 200 MA turned upwards in the early part of 2008 after a year of trending down or sideways. A larger trend upwards is still in the making as price action has remained above the 200 MA.

The volume of late has been weaker than prior upward thrusts, Im looking for a re-test of the 200 MA on the downside before adding to my position, or multiple closes above the longer term trend line on strong volume to add on strenght in anticipation of at least a $100 price target.

(I hold a position in the XGD, this is for informational purposes only, please do your own due diligence and contact your financial advisor before making any investment decisions.)

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