Comments: The HUI is in a more bullish posture now that Gold appears to have nullified its H&S top. However, I believe that upside will be limited. HUI 333 appears to be an area of strong resistance and it is important to note that the HUI, unlike Gold, has not nullified its Head & Shoulders pattern--to nullify it would require a climb above the neckline which is at around 333 now. The target for this pattern, unfortunately remains 285 or so. Despite Gold's positive divergence relative to Oil and Copper, I believe that a retest of triangle at 285 may be likely.
Comments: NXG's breakout from its descending triangle remains valid after a successful retest of the breakout.
Comments: KGC has had a breakdown reversal and now is trying to breakout of the symmetric triangle pattern. Put this one on your radar screen as the month rolls on. On January 30, BGO, with which KGC has proposed a business combination, will put forward the merger to the vote of its shareholders. The merger should take effect shortly after that and, in my opinion, will lead to a brief boost in the shareprice of KGC which has been depressed since the merger announcement. The deal, which was slightly adjusted on December 22 to add back one asset that was originally intended to be spun off as part of the transaction, will result in an increase in Kinross reserves by 68 percent to create the world's No. 4 gold company in terms of reserves.
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