Should test $4.14 soonYesterday, I posted the HUI (Gold Bugs Index) and GOLD charts. I mentioned to watch for support with the HUI considering it was at the 200 DMA support level. Notice that the Price of Gold reversed today....interesting.....with the HUI bouncing off the 200 DMA while the MACD, RSI, and Stochastics all looks like they could be reversing. If so, Gold will begin to head higher again.
Looking at the CAN chart below, a clear pattern exists. We should soon test the 200 DMA resistance which is at $4.14 right now. This could happen today. We have just bounced off oversold territory according to the RSI and the Stochastics is reversing. Sooner or later, CAN will also test the 20DMA as it has 3 times during this recent downward pattern. That would make a great short term trade if you bought yesterday.
Lot's of news coming according to the company and if Gold begins to rise again, a reversal of this downward trend is quite possible.
