http://www.moneymorning.com.au/20130813/why-now-is-the-time-to-buy-gold-stocks.html Excerpt: Written on 13 August 2013 by Murray Dawes "The Aussie Gold Miners Index (XGD) is looking particularly interesting on the weekly chart. The thick blue line in the chart below is the low in the XGD after the crash in 2008. The false break of that low could prove to be a great buying opportunity in gold stocks for the long term. At the very least we should see a bit of a bounce in gold stocks in the short to medium term if we get the weekly close above that level."
Dawes is hopeless at what he does, and nothing he writes is worthy of any respect. You might as well take a bunch of darts and chuck them at the Fin Review to pick your stocks, if you listen to Dawes and you do happen to get some winners, it won't be because of his ability, more like pure luck.
Always with the opinion Dawes is giving us something to work off - i.e. take notice if the gold stocks index closes above the level of the GFC nadir (blue horizontal line) Doesn't give the figure, but from comsec chart looks like 2674. A change in the index signifies a change in the sector, and this should affect the sentiment and risk willingness for individual stocks. Conversely, if the XGD deflects downwards from the blue line that should be a negative indicator for individual gold stocks
