The Gold Bugs Index — representing un-hedged gold stocks — broke primary support at 150, warning of a bear market for gold.
Major producer Barrick Gold is testing primary support at $10. Peaks below zero on 13-week Twiggs Momentum already indicate a primary down-trend. Breach of support would confirm, offering a target of $6.50*. More importantly, it would strengthen the bear signal for gold.
* Target calculation: 10 – ( 13.50 – 10.00 ) = 6.50
Gold is headed for another test of primary support at $1140/ounce, while 13-week Twiggs Momentum peaks below zero suggest continuation of the down-trend. Breach of primary support would offer a target of $1000*.
* Target calculation: 1200 – ( 1400 – 1200 ) = 1000