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This index consists of 10 Australian Junior Gold mining companies which at the very least have an advanced stage exploration project all the way through to a near term producing asset. The bottom section is the index itself coupled with a 150 day moving average in Red. The middle section is a Relative Strength Comparative between the index and the Gold price in Australian dollars (ADJ divided by ASX:GOLD - Australian listed Gold ETF representing 1/10 of the Gold price). We use this indicator to help us determine whether Australian Gold juniors represent compelling value relative to the Australian Gold price. The long term support line of the channel in green has provided us with a useful entry point thus far (Green Vertical lines). The top section of this chart is a standard 14 day Relative Strength Index where anything under 30 represents oversold and anything over 70 indicates overbought and is used primarily to gauge market sentiment.
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