Looking specifically at Sumitomo Metal Mining, the chart could not get much better. There is clear evidence that the stock is finding support at this level. People will ask why they are subdued, but in fact they are responding, its just that gold equities are being knocked down by the general equity market malaise. They were up 91yen yesterday. This is a good stock for Japanese to buy. Closing price today is Y1907.
PS: This blog entry is an update of a previous posting at www.gaijinpot.com/bb/showthread.php?t=11552 in Jun'05. Since that posting the stock rallied from Y1400 to Y3200. It will be apparent that I previously recommended this stock at a higher price below. It now represents better buying. Gold stocks have been slow to respond to the bullion price increase, plus this is a stronger support level.