That is a good summary of the current TA situation AJ. My 2 main points in earlier posts are that (1) current POG action is being traded on TA bearishness, and (2) the fundamentals are still bullish supportive.
Due to the massive increase in financialisation around the World ($550 trillion USD in derivatives last time I looked), these TA swings come anytime and any place regardless of fundamentals nowadays.
I monitor the analysis and opinion of a bloke named Steve Briese who has studied the COTs reports for over 20 years. He is more often correct than wrong with his analysis. He forecast this pull back in the POG some weeks ago due to the extreme long positions of traders and the extreme short positions of the commercials (especially the bullion banks aka market makers).
Last week, COTs report issued for 10/10/16, the Commercials were buyers of $7.8b in gold futures and options. Don't forget the CME options as that is part of the big game. The Funds were sellers of $8.2b in gold futures and options. This needs to happen in order for the POG to go higher in the future. According to Steve there was Funds/buyer exhaustion and that fact underpinned his early forecast about a significant pull back in the POG.
Anyway, his analysis identifies the Commercials support level at $1201.50 USD and their resistance level as $1377.50. Make of that whatever you want or need.
My other key point I made in my post yesterday was about how NST is a growth company. They are going to grow into a producer of 600k+ oz over the next 12 months or so. That is an increase of around 100k oz give or take a few oz's. That growth has built in protection against any sustained drop in POG to sustain NST's great ROE and ROIC. That means to me it reinforces that NST is still a great investment. The lower the SP goes during this correction then the keener I am to acquire more. That is my rough plan lol haha.
Finally, I fully agree with your opinion about a rate increase in the USA. The sooner the better for the POG, just like last year IMHO.
Cheers
NST Price at posting:
$3.92 Sentiment: Buy Disclosure: Held
(20min delay)
