Insert here the old saying about a picture and 1000 words…
HUI tried to get up and out of the consolidation flag yesterday but oh yes, it is FOMC week and time for more ‘will they or won’t they?’ obsession about QE tapering by entranced market participants.
So all the simple chart guy can do is blow up a daily view of HUI, show a logical (and IMO needed) consolidation from the upside burst (and gap) that got the gold community excited, the support zone (at the moving averages), the MACD trying to go green and the AROON trend that just switched to up.
All is technically normal thus far in a week that may put abnormal pressure (upside or downside) on this and other markets due to an unusual amount of data points and jawbone potential.
Pending improvement in the real price of gold (mainly gold vs. commodities) I look forward to continuing to firm up the case for this bombed out sector. I’d like to see the flag and support hold but remember that last summer we got a bottom and then a test of that bottom; i.e. a ‘W’.
Today begins a period where I will be away from the market much more than on top of it. Filter well the noise that is likely this week.