Gold BPI - Technical Watch

Bullish Percent Index
Precious Metals
Week Ending 11/14/08

The Bullish Percent Index (BPI) is another way to look at market breadth, or money flow, and can therefore be a useful tool to measure sentiment as well.

The BPI is calculated by dividing a basket of stocks in a given group or index that are on buy signals - based on a charting method known as "Point and Figure" - by the total number of stocks in this same group or index. Percentage readings above the 70% level would be considered "overbought", while readings below the 30% level would be considered "oversold" as it would pertain to each group or index individually. A classic BPI buy signal is generated when the "bullish percent" moves below the 30% level and then reverses up by at least 6%, while a BPI sell signal is generated when the "bullish percent" moves above the 70% level and then reverses down by at least 6%.

Further information on Point and Figure charting and the Bullish Percent Index can be found at Dorsey, Wright & Associates.

This chart will be updated every weekend.

The above chart is constructed with data provided by Darris McCollum

Comments provided are for informational purposes only
and not intended for trading purposes.

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