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Daily Digger Friday March 4, '05


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PAAS:

 

PAAS and HUI have identical counts.

 

Topping in mid-December, PAAS had a classic zig-zag down into the February 8th low.

 

It hit its MACD low in the 3rd wave of c, which is unusal. The long 4th and 5th's of the c wave set up a positive divergence in MACD. Most commentators were early on the bullish side.

 

Thereafter, it put on a very bullish rally, sending MACD soaring above the zero line.

 

Things looked very bullish until last week.

 

As the chart indicates, the overlap leaves a 3 wave corrective pattern on the chart.

 

PAAS and HUI have the overlap.

 

In my opinion, this is an anchor that will drag on the bullish XAU.

 

PAAS and HUI must trace out their b and c waves to this short a wave rally while ABX goes through abbreviated 4 and 5th's.

 

Only then, in my opinion, can the miners put on a sustained rally.

post-1352-1110175020_thumb.png

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