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This is an even price weighted index of 10 prominent Australian Gold producers. It has been compiled internally on account of the fact that the Australian Stock Exchange no longer provides us with this information (Something that I am sure will change in the not too distant future). The bottom section of the chart 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 ASX:Gold (The Australian listed Gold ETF which is 1/10th of the Gold price in Australian dollars). We use this indicator to assist us in determining whether Australian Gold shares represent good value in relation to the Gold price. The Green vertical lines have indicated appropriate buying times on or near the support trendline of the channel, with the resistance trendline in Red incating an appropriate profit taking area. 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. We do not use this indicator for buying and selling but more as a market sentiment indicator. You can see the Green Vertical lines correspond with RSI levels at or below 30 implying a weak market.
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