Re: AUM Crosses Above Key Moving Average Level

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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.

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Lute82

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Re: AUM Crosses Above Key Moving Average Level

in response to

AUM Crosses Above Key Moving Average Level

luker

posted on Sep 08, 2012 10:15AM

I like to look at weekly charts.

AUMN's weekly close at $6.55 was just above the key 50 week moving average of $6.50.

AUMN has been trading below its 50 week moving average since JUNE of 2011.

I also like to look at the stock price to metal price ratio.

For example, AUMN:$Silver's ratio closed at .1944 yesterday. This is based on AUMN's weekly closing price of $6.55 and $Silver's weekly closing price of $33.68.

The 150 week moving average for this ratio is .44. IF AUMN was trading at .44 the price of $Silver, the share price would be at $14.82.

$Silver closed well above its 150 week moving average of $27.75, yet AUMN closed far below its 150 week moving average of $11.90.

Hopefully, the time is near for the mining shares to sharply outperform the metal price. With the strength in the metals, institutional investors might finally decide to play mining shares to the upside.