Hi all,

The price movement of RBY has been outperforming the price movement of a major gold index - XAU - since early this year. This is shown in the 3 yr daily chart below.

http://stockcharts.com/h-sc/ui?s=RBY...

Down below the price chart of RBY is a graph of RBY/XAU, which represents the strength of RBY relative to the average gold stock. During the last 3 quarters 2007 RBY was underperforming gold stocks badly. Starting in Feb of this year, RBY started outperforming. The last 2.5 months, it has been outperforming greatly.

At the turning point in any market, we are taught to look for the stocks that have been outperforming; because these are often the leaders in the next up leg. RBY certainly meets this criteria.

Also of interest on the price chart of RBY: [ I don't have the capability to show trendlines on these charts, so this may be a little difficult to follow -- sorry]

-- If you draw a line from the intraday highs of Apr to Oct 2007, it comes in about 1.52 right now.

-- On Aug 26,2008 RBY broke out above this downtrend line on very high volume -- a bullish sign.

-- During the last leg down in the gold selloff, RBY got pulled back [Sep 9-11]into the basing area 1.3 on contracting volume -- OK.

-- On Sep 17 RBY pulled back above that downtrend line on increasing volume -- good.

-- The last 2 days, RBY has stayed above that line and pulled back to test it both days - good.

-- The price of RBY is now above the top of the basing area of the last 9 months -- good.

-- It is above all the moving averages -- good.

-- Take a look at the continued high volume we've had over the past 3 weeks or so - ever since the bonanza PR -- that is a good sign.

-- Above the price chart is the RSI & MACD -- both of which are positive.

-- A move up from here would signal a continuation of the up leg started a little over a month ago.

This stock is giving many signals that it has started a move up that may be an extended move -- not another one of those many ZIG ZAGS we have seen in the past.

Jher