Loading ...HUI Daily Technical Status
HUI ticked a new high above the February high and that improved the odds of a new uptrend engaging regardless of whether or not the index pulls back from here. That was an impulsive reaction through former resistance surrounding 210 and even more importantly, above the 50 and 200 day moving averages.
We projected a potential A-B-C correction scenario (to the previous daily uptrend) back in early March and that appears to have played out, with ‘C’ the downside resolution. Now it is critical that any coming pullback do no worse than fill the gap (which would be a good, although not necessary thing because it is likely a breakaway gap that will have changed the trend), test support around 210 and ultimately hold the moving averages.
Interestingly, Huey never got strenuously overbought despite the big spike and so it is not a given that this leg of the rally is done. It has been testing minor short-term support at around 240 (not drawn on this chart). Should the 210 area unexpectedly fail, the next key support is around 180, which has longer-term implication (also not shown on this daily chart). That gap along with four others have already filled so there is no need from a gap standpoint to explore levels that low.
Bottom Line: Any decline to the 210 area could be a significant buying opportunity and if it is a successful test I believe that would be the signal to hold this sector for a longer run to higher prices.
Gold Stocks vs. Broad Stocks
Here we dial out to a weekly chart view of the HUI/SPX ratio. See something? See a trend change that began in 2018 with a series of higher highs and higher lows in play since then? This is a dangerous sector to be involved with if you don’t know why you’re involved. ‘Smart sounding people love gold stocks’ is not the right answer. The right answer is that we need the fundamentals and the relative trends to be in play… and they are.
The great NFTRH gold report-this guy is good
No Comments
No comments yet.
RSS feed for comments on this post.
Sorry, the comment form is closed at this time.