The 60 minute view from yesterday’s update has made a lower low as 260 was violated. Now HUI is looking for support at the EMA 50 (253).
I want to zoom in on the pullback parameters. A previous update had mentioned 250 as a possible buy point, with risk control at 240. The chart above puts better definition on that.
A drop to the 240 area (+/-) would actually fill a gap and could be considered a primary support zone. 219 remains the important bottom pattern confirmer/killer. MACD and RSI are stair stepping upward but we do not want to see RSI make a lower low.
The Gold-Oil ratio is still okay and subject to what develops on the geopolitical front, should continue to hold as a fundamental indicator for a constructive case on the miners. Other gold ratios continue to be supportive as well.
As already noted, if the fundamentals remain intact the current decline is painted as a buying opportunity.
