Just a quick snapshot of the HUI after a churning, grinding Monday that did not feel bearish to me.
The 60 min. chart we had been watching held the support zone once again and I am going to nix that chart in favor of the above. I do not want to get too focused on the short-term day trader(ish) charts.
The daily chart is making something of a bull flag here with a gentle downward bias. Of course this could be blown away with one big gold bug puke fest but the chart as it stands now is more bullish than bearish (in my opinion) and maintains a potential bottom stance.
Daily RoC (Rate of Change) has gone positive and next we want to see the daily trend by AROON go green as well. MACD and RSI bull divergence are in place and the important objective is to get above the 50 day moving averages. We have seen this happen on certain leaders (as reviewed in this week’s letter) and now we’d want to see this fan out to the average gold/silver stock.
Bottom Line: For now, HUI remains within a viable bottoming stance.
