NFTRH Interim Update 4.4.13, HUI

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HUI daily, click for full size

The HUI daily chart is now getting over sold by RSI.  Its non-over sold status was a negative until now.  The index is near a trend line and there is a bit of positive divergence.  None of this means much without support, however.

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HUI weekly, click for full size

The weekly view shows that HUI is in a cluster of support from 2009.  But the next Fib retrace level is below at 260.  Tough call here.  So we will not call anything.  We will simply note that HUI is becoming over again sold across all time frames and 260 could be a gift.  But there is long-term lateral support at current levels as well.

As you know, I added the CEF bullion fund yesterday, so I am slowly employing the ‘buy value’ strategy now.  I do not see gold mining stocks with the same eye for value that some others do.  But those who are fundamental bulls on the gold stock sector should now be thinking about value as long as they can deal with the fact that the sector has additional downside potential.  That is because those investors have another kind of risk to deal with, and that is opportunity risk.

Aside from the words above, I felt that a couple of pictures will help give some perspective.