HUI - Daily & Weekly Status
by Gary Tanashian, Biiwii.com | May 20, 2008
PrintThe daily chart of HUI shows a bullish Huey heading toward some short term over bought readings. For the record the AROON indicator, which I neglected to include in the daily still shows a down trend. Fibonacci retrace levels are shown to illustrate that in the short term at least, HUI remains in a corrective mode to the DOWN trend.
HUI - Daily chart 1 (click for large image)
Why have I remained positive on the gold miners technically and held the core throughout the correction? Because the weekly chart remains more than fine. Until such time as weekly RSI & MACD fall below the green dotted lines shown, any pullbacks are to be looked at as opportunity. I don't expect such a failure any time soon. A short term pullback to support is unlikely to bust the MACD & RSI.
HUI - Daily chart 2 (click for large image)
With the broad market's risk/reward starting to stink from a technical perspective and with the gold stocks having assumed a more traditional counter-cyclical stance, the setup appears to be in place. While traders may want to look for a place to take short term profits, getting too cute trading in and out will likely prove costly at some point soon.
Copyright © 2008 Gary Tanashian
Editorial Archive
contact information
Gary Tanashian | Email | Website
The opinions of FSU contributors do not necessarily reflect those of Financial Sense.
