Gold Bulls need a close above $1360

I have been a Gold Bug since 2007 when Gold broke above $700 and saw it hit $1000 only 7 months later. Then suffered the 30% fall back to $700 over the following 7 months during the financial panic in 2008. Gold has stayed above $1000 for the last 13 months. Gold found support at the 50ema ($1336) and is looking to head back up to test $1380. A close above the 10ema($1361) and 20ema($1363) will be the trigger to go Long with a target of $1420. A Daily close below $1320 will trigger a short trade with a target $1220.

Gold stock are a leverage on the Gold price. $HUI tracks the largest Unhedged Gold companies. $HUI broke above long term resistance at 490-510 in October 2010 and retested the breakout shortly afterwards. Upside target is 850 a 55% rise from here. The first leg up from 28Aug at 430 lasted 55 days and took the index to 530. The pull back to 490 was only 6 days. The current up leg is 21 days, hitting a peak after only 13 days near 590. The current pull back to 530 should not be exceeded if this rally is to continue into Jan 2011 with a target 630 by Thursday 6 January 2011