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July 02, 2007

Honest Money Gold and Silver Report: Market Wrap
by Douglas V. Gnazzo

Market Wrap

Week Ending 6/29/07

Report cannot be copied to other websites without express permission of author and Safehaven website in writing.

PRECIOUS METALS

Gold lost $6.10 on the week, closing at $650.90 (-0.93%).

It remains below its lower trend line, but is above its 65 ema and its 300 day moving average as well.

Both have provided strong support all during the gold bull.

First up is the daily chart that shows a positive divergence between the MACD indicator and the price action. MACD has made a lower low, while the price of gold has not.

Next up is the weekly chart. The dominant feature is the negative MACD Cross, which needs to turn back up before any sustainable rally can occur.

The 65 week moving average has provided solid support all during the gold bull. It presently resides at $626.03, which is just under $25 dollars below its current price (650.90).

To reverse the short term trend $665 needs to be taken out to the upside and sustained as support. STO is fast approaching the 20 oversold level.

SILVER

Next up is the weekly silver chart. The dominant chart feature is the negative MACD Cross. STO is just about at the oversold 20 reading, which may or may not offer support.

Silver also broke below its 65 ema this week and is acting weaker than gold.

XAU

The Xau closed down 3.22 points to end the week at 135.95 (-2.31%). It closed below its 50 day moving average, which is at 138.08.

For almost a year now the index has been trading sideways in a rage between 150-125, and is presently right in the middle of this zone.

Next up is a different daily chart. It shows three fan lines extending out from the 2006 June high. Highlighted in yellow is the upper resistance barrier, and below are its support areas.

Below is the monthly chart of the Xau which shows its 7 year rising channel firmly intact. At the bottom of the chart is the Xau/Gold ratio that shows a break just above its upper falling trend line.

HUI

The Hui closed down 6.70 points to 329.35 for the week (-1.99%). It closed just below its 200 day moving average on the daily chart, which is at 329.59.

As the daily chart below shows, the Hui has tested its lower trend line and rallied up, and is now meeting resistance at its 200 ma.

The dominant chart feature still remains the negative MACD Cross, which needs to be turned upwards if any sustainable rally is to occur.

Next up is the weekly chart of the Hui. Its lower trend line was tested and held support.

The dominant chart feature is the negative MACD Cross; however, both RSI and STO show positive divergences.

The Hui's 65 week ema has provided support all during the bull market, and presently resides at 322.65. It offers solid support.

Below is the monthly chart of the Hui. Once again the dominant chart feature is the negative MACD Cross.

The 20 ema offers strong support, which is presently at 315.57, while the index is above at 329.35.

The histograms show positive divergence making lower lows, yet the price of the Hui did not.

Last up is the point & figure chart of the Hui. It shows a bullish price projection at 396, which is approximately 20% higher than its present price of 329.35.

INDIVIDUAL STOCKS

Below are two gold stocks in the gold stock portfolio.

Both have been mentioned before, however, one is performing quite well, and the other has a significant positive divergence that has slowly developed over the last several weeks - so both warrant another look.

The charts are self-explanatory so nothing more needs be added. Please remember, both of these stocks are held in the gold stock portfolio, and more may be accumulated.

To see the two above noted charts and the full market wrap on all of the markets (40 pages) click on the link below.

Invitation

Stop by our website and check out the complete market wrap, which covers most major markets. There is also a lot of information on gold and silver, not only from an investment point of view, but also from its position as being the mandated monetary system of our Constitution - Silver and Gold Coins as in Honest Weights and Measures.

There is also a live bulletin board where you can discuss the markets with people from around the world and many other resources too numerous to list. Drop by and check it out. Good luck. Good trading. Good health. And that's a wrap.

Come visit our new website: Honest Money Gold & Silver Report
And read the Open Letter to Congress

Report cannot be copied to other websites without express permission of author and Safehaven website in writing.

Douglas V. Gnazzo
Honest Money Gold & Silver Report

Douglas V. Gnazzo is the retired CEO of New England Renovation LLC, a historical restoration contractor that specialized in the restoration of older buildings and vintage historic landmarks. Mr. Gnazzo writes for numerous websites, and his work appears both here and abroad. Just recently, he was honored by being chosen as a Foundation Scholar for the Foundation of Monetary Education (FAME).

Disclaimer: The contents of this article represent the opinions of Douglas V. Gnazzo. Nothing contained herein is intended as investment advice or recommendations for specific investment decisions, and you should not rely on it as such. Douglas V. Gnazzo is not a registered investment advisor. Information and analysis above are derived from sources and using methods believed to be reliable, but Douglas. V. Gnazzo cannot accept responsibility for any trading losses you may incur as a result of your reliance on this analysis and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Do your own due diligence regarding personal investment decisions. This article may contain information that is confidential and/or protected by law. The purpose of this article is intended to be used as an educational discussion of the issues involved. Douglas V. Gnazzo is not a lawyer or a legal scholar. Information and analysis derived from the quoted sources are believed to be reliable and are offered in good faith. Only a highly trained and certified and registered legal professional should be regarded as an authority on the issues involved; and all those seeking such an authoritative opinion should do their own due diligence and seek out the advice of a legal professional. Lastly, Douglas V. Gnazzo believes that The United States of America is the greatest country on Earth, but that it can yet become greater. This article is written to help facilitate that greater becoming. God Bless America.

Douglas V. Gnazzo © 2005 - 2008
All Rights Reserved Without Prejudice

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