Breaking Support + FVL & Price of AuWe're testing the 1st support level of 1.64 - 1.65 right now...We'll have to see if it breaks down towards the 2nd level of 1.55 -1.56 before todays close
Interesting to note that while price of Au has been moving up strongly, a number of the juniors ( even some junior producers ) are getting whacked. Personally I think this move in gold price is a little too much, too soon & a consolidation between 1825-1850 for a month or so, would've been useful but thats JMO
I posted the below on another thread yesterday, however it does have some general comments that some people here may find useful - GLTAL :)
RE:RE:Confused
Good points to remember Philly: Actual producers will generally be more sensitive to price movements. At the same time, Hams original post probably echos the sentiment of a number of investors who are new buyers of some recent high flyers in the sector...JMO but I think there is a bit of a sector rotation out of the juniors, particularly by some US based houses - This is due to the fact they wish to lock in profits prior to US Gov. stimulus cheque program expiring at the end of this month. I've spoken with 2 people woRking in the industry there and according to them, there is a general unease with this situation, as it could led to a general market sell-off beginning of August. This is based on the possibility that people who've used their cheques in the last few months to send the markets higher, will start to exit the market as they may need to use those funds for their day to day expenses...Ironically, I think the US Gov will sort out this situation & go forward with another round of stimulus cheques but it may not be until 1st or 2nd week of August...If there was a sell-off along these lines, I dont think it would be as severe as in March but I think all sectors - including PM's and their related stocks - would trend downwards for a bit