NFTRH Update, HUI and its Ratios to Metals

HUI continues below the 50 day MA’s but has been sneaky in its refusal to break down despite the pressure on the metals over the last few days.

hui

A rise above the 50’s and a turn up in MACD would put things back on bull alert for the miners.

hgr

HUI vs. gold is still MACD green and holding onto the 50 day MA’s.

hsr

The HUI-Silver ratio asks the question as to whether I have been focusing too much in the wrong area (silver leadership as opposed to gold miner leadership).  The chart is constructive.

Silver continued to break down vs. gold again yesterday and that is typically a negative for the precious metals.  But I ask you what is typical about the last year?

Bottom Line

I am watching the HUI and its consolidation below the MA 50’s.  Also watching the two ratios above.  The reason I entertain the bull is because the weekly charts remain on bull signals by MACD and TRIX.  The dailies have been filled with noise and the noise could get more bullish with a bump up here.

It’s a tough call because there are risks to the bull view, which is why I have recommended that the safest way to go is wait for the HUI to get above the 50’s (and even close a few days above) while at the same time MACD makes a bull signal.  A real rally or bull market after all, would only just be getting going even 20-30 points above current levels.

But I hope the above can add more food for thought about the state of the gold miners at least.