Earlier today, the markets tanked on Europe concerns. Gold & Gold Stocks were not spared.

While everybody is in panic mode, it's time to look at some interesting charts.

Let's start of with the HUI index:

• The RSI reached oversold levels
• Price retested the breakout line that has been in place for the last 3.5 years
• MACD is very oversold

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The GDX (Market Vectors Gold Miners ETF) is showing a similar picture:

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Although GDXJ (Market Vectors Junior Gold Miners ETF) does not exist long enough, it also penetrated it's breakout zone.

• The RSI is very oversold
• Price has reached the target of the Head & Shoulders pattern on the Logarithmic chart
• MACD is very oversold

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When measured in gold, CDNX, a list of Resource Exploration companies (and some Tech Companies), is as cheap as it was at the bottom in 2008:

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In short, I think mining stocks are at (or very close to) rock bottom levels.

Let's have a look at Gold:

During the last 11 years of this Bull market, gold has often corrected.

As we can see in the chart below, most of the times, the correction was halted by the 35 weeks Exponential Moving Average.

So far, this 35EMA has stopped the correction as well, and the RSI is hoovering around 50 on a weekly basis, which is still a bullish sign. I have highlighted previous buying opportunities with a green circle. Will this time be any different?

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Charts above courtesy stockcharts.com

The chart below is an update of the comparison I made a couple of weeks ago between the Gold Price NOW versus the Gold Price in 1979. The pattern is also suggesting that we could be close to or at a bottom:

So sit tight and be right