by Pater Tenebrarum, Acting-Man.com:
Getting Short Term Overbought
Here is a brief technical and positioning update on gold. In euro terms, gold has just experienced a scorching rally – as a result, the previously discussed resistance levels in gold’s dollar price have been overcome as well. However, gold seems now quite overbought relative to the euro in the short term, and it also seems quite overbought relative to commodities.
The rally in the HUI index has recently been rejected near the 200 day moving average, and the HUI-gold ratio has pulled back somewhat, which also increases the probability that a corrective/consolidation period has begun.
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