Way #1 sees the HUI Gold Ratio (HGR) below the lateral breakout line (neckline interpretation #1).

Way #2 sees it breaking neckline interpretation #2 this week.

What’s it mean?  Why, gold stocks have been stronger than gold for 2.5 months now!  It also means that a break above the red line would be very bullish and there is already some bullish stuff going on with this chart (ref. the panel indicators and the positive divergence to price in December and their 0+ and 50+ status).

AROON is a party pooper as it turned down due to the time this ratio – like so many other aspects of the precious metals complex – has taken taken in slogging through its potential bottoming process.