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Monthly Digger - January 2006


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It was a spectacular rise off the 460 area support back in November where we retested a bigger support and the cause behind it pushed us up to the 540 area. We ended Decmeber mid-range between confluence support and the top. The danger point here is hovering 1-5 points in this mid-range area and retesting the supply that came in. The reaction off confluence in the 490 area was good. But now we need to see which way it goes for retesting..

 

We're on higher ground.. for sure and so are many of the gold stocks as they broke out and retested support.. I can't think of a better way to start the year.

 

http://www.StockSharePublishing.com/ChartL..._1136064370.png

 

Thanks for joining us and Happy New Year.. and a prosperous one too.

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I don't see anything wrong with doing DD over the long weekend. This is a once in a life time opportunity to acquired mining stocks and make some real dough.

 

The way I understand it is that the already large producers need to keep reserves at certain levels to mine in the future so that they may continue supporting their stock price. This even if they have to acquire all the jrs they can and their reserves to satisfy the buyer's future production quotas. Just not that much gold in the ground to begin with. The banks will probably be the big winners here.

 

Agree, banks always seem to make money. How about the banks that make loans specifically to miners?

 

Quest Capital (QCC)

 

Endeavour Mining Capital (EDV.v)

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After a breakout and retest of the creek for the XAU, historically I put at least 20 points or more for the advance to a new high before a consolidation begins.

 

If you look at the breakout in 2002 we advanced 22.33 points. Again, in 2003 we advanced 24.85 points..

 

http://www.stocksharepublishing.com/ChartL..._1136089180.png

 

If you allow for this same kind of advance then the likelyhood at arriving at 137, 140 or even 150 is pretty good. The reason I might even suspect the 150 area highs is because we have a large amount of horizontal cause just below us. The only question right now is do we pull back to retest the creek area here or continue on to higher ground.

 

http://www.stocksharepublishing.com/ChartL..._1136089398.png

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In 1993 after a breakout the XAU advanced 33 points off the 95 creek ... then turned back to retest the creek

 

http://www.StockSharePublishing.com/ChartL..._1136090480.png

 

after it retested the 95 creek it once again made an advance from 95 to 146 or 137 points..

 

http://www.StockSharePublishing.com/ChartL..._1136090569.png

 

in considation of this.. we could possibly retest the 155 highs in 2006

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happy healthy prosperous new year everyone!

back from warm mexico. i had a very good year in 05 and i hope all of you did as well. looking for 725 later this year. buckle up! dharma

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In the near term I am looking at what a gold consolidation could do

http://www.foxfutures.com/futures/051227-dlff/DLevels.htm

 

and for seasonality on HUI I am wondering about a consolidation trading range that drifts down into the March/April time frame.. but stays above the creek.

 

http://www.StockSharePublishing.com/ChartL..._1136231590.png

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