HUI – Daily, Weekly
HUI Daily hit the bottom of the channel at the 62% fib, and bounced. What I like about the chart is that HUI is outside the BB and should allow a bit of a recovery. The overhead BB is opening up so that if a rally does occur, the index has an open roof. There is a slight positive divergence on the RSI, although one should note that it is much like October’s positive divergence that allowed only a bear flag rally.
What I don’t like is the terrifying plunge to the bottom of the channel. Until mid summer PM stocks indexes exhibited sudden, rapid upside moves, while downside reactions were ponderous affairs building support for the next jack rabbit hop. This market is the other way about. Rallies are hesitant, never gaining a lick above upside resistance while surprises are to the downside. HUI is below the 200 and 400 EMA. On thing to watch for is overhead resistance at either one.
HUI weekly inverse SHS view. Reverse symmetry for an inverse SHS looks broken. Instead there may be a back test to the SHS top. Watch for resistance at the neck line.
HUI weekly bull market BO and BT view. A faint hope is that the break down is a false breakdown similar to the January false move before the baby bull took off. However in January MACD was already climbing when the break down happened. Today MACD may be riding the “slope of hope.” One positive note – Is that a bit of a positive divergence on the TSI?
Discosure. I am long the PMs for a bounce, but I am a nervous bull. Preservation of capital is imperative.
Humbly submitted. Views can and do change. Good investing all.
Great synopsis, lots of overhead resistance to overcome…You included a few I need to add to my charts