Gold Stocks Major Breakout"The bottom line is gold stocks’ major breakout this past week likely signaled the long-overdue major trend change. After being crushed to fundamentally-absurd prices by that extreme gold-futures shorting attack, gold stocks refused to fall any lower despite epic bearishness. And then they defied the odds to stage a powerful upside breakout from a bearish descending-triangle technical formation. Buyers are returning.
And while this technical green light is exciting, the real reason gold stocks are so incredibly bullish is their extreme undervaluation relative to the metal that drives their profits. Gold stocks recently hit all-time lows relative to gold, trading as if gold was around $300. As gold stocks more than quadrupling after 2008’s stock panic proved, such extreme sentiment-driven anomalies can’t persist. So don’t delay, buy low now!"
http://www.marketoracle.co.uk/Article52605.html