GOLDBUGS AMEX Goldbugs Index (GOLD)

[DiscoverGold]

"Natural Gas Rising, Gold Falling" By Tom Bowley

* December 19, 2009


In my last article I wrote about the recent disconnect between crude oil and oil services stocks. On a relative basis, oil services stocks had severely underperformed the S&P 500 from mid-October to early December despite crude oil prices trading flat to slightly lower. Since that article, oil prices have begun to climb a bit, but oil services stocks have significantly outperformed the S&P 500, bringing the relationship between the $OSX and crude oil more in line. Other commodities are interesting at this time as well.

After a sharp run up in gold and VERY overbought oscillators, we've seen a significant retracement and we're nearing key short-term price support. I expect gold to hold at this price support level. Take a look at the chart on gold below:



If gold continues falling, I expect it to find near-term support in the $1070-$1080 range, with much more significant long-term support from $1025-$1050...

http://blogs.stockcharts.com/

George.

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