Today there is some turbulence. Good, an extended rally scenario would not want to see the sector fly up to excessively over bought levels all in one big gulp. HUI is only moderately over bought.
By breaking the consolidation handle in the first half of this week HUI has now established the 220 +/- area as the first key support level, replacing the former 210 +/-. That’s progress folks and if (there is surely no guarantee) this support is to be tested the ‘grinding bottom’ scenario would be well in place.
HUI is bullish and until such time as it takes out an important support level (ref: 210 and now 220), pullbacks are healthy. The above is provided as reference for profit takers, would-be buyers, hedgers and regular old holders.
