I've reloaded with AZH over the last week or two - back to my former holding - on the basis that its 61.8% retracement of the entire 2009-2012 rally (at 40c) has held pretty well so far (touch wood).
Also because the All Ords Gold Index (XGD) has also held its 61.8% retracement (of its 2008-2012 rally) - and I note that yesterday it broke through a 4 month downtrend line.
People seem to have been ploughing back into quality gold stocks over the last couple of days, so my gut feeling is an upward move is underway. Whether it's just a short term bounce, or a full-on resumption of the long term uptrend, time will tell.
I'd be worried if AZH goes through 39c though, or if the XGD breaks into new 2012 lows. Then I'd be thinking the downtrend probably has significantly further to run.
AZH Price at posting:
46.0¢ Sentiment: Buy Disclosure: Held
