The U.S. Dollar Index is up sharply this morning, 3/4 of a per cent to bring it just above 83 cents, which is putting some pressure on Gold which was higher most of the morning…Gold is now off $9 an ounce to $1,173 as of 8:00 am Pacific time…as we have already pointed out, the fact Gold has been holding up so well and even advancing in the face of a powerful U.S. Dollar is unusual and ultimately very bullish for precious metals…the CDNX is struggling this morning…yesterday’s early morning reversal – it ran within a few points of its 1691 52-week high and then closed down for the day – was clearly a bearish sign, and the Index is off another 35 points this morning to 1631 with the Dow down over 200 points and the TSX off 150…the Venture has dropped below its 20-day moving average which is now threatening to decline for the first time since late January…this market found strong support last month between 1635 and 1640, so we’ll see if that area holds up again this time…if not, a drop to the rising 50-day SMA just above 1600 is probable…we stress that these pullbacks in the Venture over the past year have consistently proven to be good buying opportunities…the CDNX has also hit a point on the RSI (50) where powerful upside moves have originated over the last year…Gold Bullion Development (GBB, TSX-V) dropped to 37.5 cents but has recovered and is now unchanged on the day at 39 cents…GBB has very strong suppport in the 35-37 cent area…North Arrow Minerals (NAR, TSX-V) should also be accumulated on any weakness…it hit 25 cents this morning but has pulled back to 23 cents with this morning’s across-the-board selling…Sidon International (SD, TSX-V), which is expected to close its $750,000 financing very soon, is down a penny to 7 cents where it has strong support…
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