Thursday, October 1, 2009

Royal Gold -- RGLD

the six month chart shows what could be interpreted as an eight wave distribution pattern. however, optimists might consider the latest weakness as something of a 'bullish flag'.

however, looking at the chart over the entire year, I see another, larger, potential eight wave pattern.

a smidgen more weakness (buck/two bucks) in the short term should, per my preferred techniques, signal a correction into the mid- to low-30s.

even if you don't own, or trade Royal Gold, the price action of this issue over the nearish future should prove a useful indicator for the direction of the PM complex.