Adam Hamilton - rGold

One of the best ways of determining oversold/overbought levels is to divide an asset price by its 200-day MA. You get a relative value where you can easily discern the tops and bottoms.

rGold is something I've been following for years, and its always proven correct.

source: http://www.safehaven.com/article/25045/bullish-gold-technicals

Should rGold prove correct in its assessment that we are at technically very oversold levels, then this lends support to the eWave projection that we are in a major correction, as we had been in 2008 - 2009.

I'm not so sure that a definite end to the so-called "phase II" of the bull market in gold is easily demarked by rGold, and that the entry into "phase III," the mania phase will be clearly outlined.

Certainly "phase I" was easily called, from 1998 - 2008. Mr. Hamilton has not called the transition from "phase II" to "phase III" just yet, though in the article he discussed a rally is underway.

The takeaway is that gold miners will observe higher average gold prices, and should see steady, higher average gold prices from here on in. The solid implication is that their internal rates of return should advance with stronger average gold prices, as profitable, producing gold mines have fixed costs and can probably pay for their own development.

http://www.sharelynx.com/chartstemp/GoldeWave.php