http://stockcharts.com/def/servlet/SC.web?c=drooy:$ZAR,uu[w,a]dallyyay[de][pd20, 2!c50!f][vc60][iUb14!La12,26,9]&pref=G the drooy/rand curve is just bouncing up off the lower bollinger band, but will probably meet resistance at 18.07, the 50 ema, and then drop back down. that would be consistent with the gold/rand curve suggesting drooy might move up another 10% and the start back down. Bottom line, I wouldnt be buying drooy right now, and in general I wouldnt be buying or selling any gold stocks for the immediate term. the xau has gone into a downtrend with respect to gold. the market is telling us things are going to slow down, or even reverse, until or unless it becomes clear that gold is going to break above 420 and is on the way to 450+. Im holding for the moment. If I would recommend anything it would be samex or pmu.
Actually that's bearish and that's really what we want the rand to be -- bearish versus the greenback. The red O's represent a relative price decline.
The chart is on the verge of producing a sell signal (if the current column of O's continues) and the RS of the rand versus the dollar wanes a bit more.
I personally don't think it's good enough to look at the rand alone. You want to see how it (the rand) stacks up against the dollar which is compared to some of the other majors such as the Euro, Yen, Pound, Canadian Dollar, Swiss Franc, etc.