Update 12:00 pm

As mentioned yesterday, the gold stock sector could still show some weakness in the following few days, today was not an exception.  It seems the gold sector trades at a high early in the morning at the open, then immediately trades down and then closes the day a higher than the lowest point of the day. While the last 2 days on the TTGD index have been trading sideways, the patter of opening high, moving towards the support zone and then closing above support seems to be a re-occurring trading pattern over the last week.  See the 5 day chart below to see what we mean.  In the last 5 days clearly shows the daily trading pattern mentioned above, open high, sell off during the day and then close somewhere in the middle.  What is most important right now is the moving averages, by mid day today, the index tested yesterdays lows and is moving slightly higher and is now above the 50 unit simple moving average based on a 5 minute chart of the TTGD index. This is important and as long as the index holds support at 425, we are confident the bottom is close at hand for this weeks lows and we can move towards testing the 5 day highs around 450.

Why do we feel this is important to our investment and trading decisions?

We don't want our Golden Fortunes Club Members to purchase gold stock first thing in the morning at the open.  There is no need to rush into gold shares at the moment because they have already had a great move higher over the last few weeks and the sector is consolidating those gains and doing some testing and back-filling at this new higher trading range.  On the index, we can see 5 day support at 425 and overhead resistance at 450, this is the new trading range for the moment.  If support at 425 holds this week, the index will most likely test the high-end of the trading range later this week or sometime next week.  Once the overhead resistance of 450 is taken, then we can move up the stairs to a new higher trading range and the bull market breakout in gold stocks will resume its trend higher.