HUI Daily
The chart is a little busy. There are two SHS patterns – the first sitting on the black dotted line that has a price projection (PO) to the 62% fib area at 170 ish, the second SHS rests on the blue dotted line and has a PO down to 130 ish. What is interesting is that the miners seem to have stalled in their decline, refusing to follow gold lower (so far) – similar to what happened in May of this year (green boxes) Support for HUI presently is at 62% fib, the 400 DMA, and the apex of the diamond pattern from March of this year.
It is madness to suggest the miners could rally from this point, what with gold seemingly in an impulse move toward a double bottom at least, the dollar breaking out of a humongous bull flag, the EURO headed for oblivion, and don’t forget the miners 50/200 DMA bear cross. There is that large SHS pattern confronting us too, the one sitting on the blue dotted line. That is the death knell, sighed, sealed, and awaiting delivery. The money printers, it seems, have won.
And yet, and yet…
Disclosure: I have been nibbling at the miners these last few days. Therefore I am long the PMs. I am a long, long mad man. (sigh)
Right there with you Silver Fox
Positive Divergences on the indicators and as you point out miners vs Gold
I agree 100% as well. Now China is limiting Gold imports. I’ll buy a bit more phyz at the double bottom, which I think is a pretty fair value given sovereign debt growth & inflation (yes it’s there even though the fed can’t find it. Look at the net weight of your Oreo packages over the last 5 years.)
Madness? Probably.
This APPEARS over last several weeks, to be clear abc corrective … lateral, mostly.
As I noted weeks ago, GDX bottoms have tended to come on/after a fairly clear LT OS signal with values below -100.
I’ve gotten six of them since 2011.
My last note posted here had this at just below zero.
We’re currently at -75 ish.
I’m expecting the BMR to resume, probably not before another OS low. We’re not there yet.
AND … some of the final GDX price lows (like last Jan) came well after the OS condition was fulfilled, which came on a higher divergent condition.
Wouldn’t be surprised to see that repeat, with a bounce starting EOM, then lower lows late winter, ahead of spring bottom. TWT.