Loading ...I’m with Mark on this one
The fact that HUI is consolidating under its 50-month sma (my long-term bull/bear divider in this stage of the bull), it makes sense to me that if HUI can’t close above the 50-month sma for the month of June, then July will be a down month to continue the consolidation before eventual break-out in aug/sep. This is a lot like the scenario in 2001 except both price and time of the consolidation are shallower.
I have not heard before of the significance of the 50 M SMA. Could you help me out? I am familiar with the 35 M EMA being a good divider between bull and bear markets but not the 50. Here I show the 50 SMA in red and EMA in Black. You can see that it appears to be making its move above it. I have always preferred the use of the EMA over SMA as its more in the day and useful to me. Using this it indicates a more bullish picture and an initial break out
Chart won’t post sorry
This is something I discovered on my own while trying to do long-term TA. It’s worked very well for some stocks like AEM during the bear market so it has protected me from some losses. The current state of AEM though is it closed above its 50-SMA a few months ago and that was my signal for going long gold stocks. But HUI hasn’t yet managed that and it looks to be a formidable resistance back in the beginning of the bull in 2001.
If you look at the first rally off the bottom for gold in 1999, it didn’t stall out in the 10 ema or 20 sma but did meet resistance again at 50 sma. So, for me, it is an important moving average. all periods are monthly, of course.