Russell on Gold
June 7, 2004
Let's check the gold picture. Below we see a weekly chart, and the chart should be encouraging for gold-philes. At the top of the chart we see that RSI has recently declined to about where it was during March-April 2003. That was just prior to the major advance that took place during the remainder of 2003. RSI, having bottomed, is now rising again.
[Blockierte Grafik: http://www.stevequayle.com/New…y_pics/040607.russell.gif]
At the bottom of the chart we see MACD advancing and close to crossing above its shorter term (thin black line) moving average. If or when a bullish crossing takes place, the blue histogram will rise above zero, and a bullish phase of gold action will begin. The ten-week and the 40-week moving average for gold come together at around 395-97. It would be bullish for gold if the metal can rally above both of these moving averages -- and move into the 400 area.
Richard Russell
Editor-in-chief - DOW THEORY LETTERS
http://www.dowtheoryletters.com/dtlol.nsf
The inimitable and venerable Mr. Russell gained wide recognition via a series of over 30 Dow Theory and technical articles that he wrote for Barron's during the late-'50s through the '90s. Through Barron's and via word of mouth, he gained a wide following. Russell was the first (in 1960) to recommend gold stocks. He called the top of the 1949-'66 bull market. And almost to the day he called the bottom of the great 1972-'74 bear market, and the beginning of the great bull market which started in December 1974.