Update; HUI Symmetry & Other Gold Stock Analysis

Well, our work of art kept to plan for another day.  The two shaded candles are the corresponding candles of interest for this week.


From NFTRH 285:

“If symmetry holds up next week would grind around a little but ultimately end higher.”

Yesterday HUI certainly ground around a little and today the candle stayed on message by holding the support around 225.  A mirror image of the left shaded candle would see the rest of this week just sort of hang around.

Now again, since I made this symmetry ‘analysis’ up we should continue to view it as art, not science.  But as long as it plays to the script, I give it respect.

As for our friends the potential bear flags, they are still there.  But volume got better today.  For most of the day it was lame, but some sneaky volume crept in at the end of the day.  Here’s the 60 min. view of GDX.  Volume tried, but did not break GDX out of the flag.


60 min. GDXJ as well is still within its flag despite heave EoD volume.


Other Notables

Royal Gold, which can be considered a leader got decent volume and looks like it is on a new rise off the support we have been noting by weekly charts.  Here’s the daily view and that’s no bear flag.


Fellow royalty Franco Nevada has triggered its MACD up after bouncing in the zone we had been projecting as support all along.


So the quality end of the sector appears to be stabilizing.

Bottom Line

It is NFTRH’s symmetry artwork (and a projection for higher prices) that is working eerily well so far vs. the potential bear flags.  Who wins out?  It does not matter.  HUI 225 would be the gateway to downside breaks from the flags, but the symmetry plan thinks this week’s lows are probably in.  I am in ‘respect the market’ mode and whatever it decides, fine.

If the flag shapes are broken to the upside, like the view on RGLD above, that would tell us that we are very likely on a new leg up.

I would be all for buying gold stocks at HUI 100-150 some day if the horror analysis making the rounds out there proves correct.  If the EW wave 5 down in gold is right around the corner.  If if if… Above 225 keeps NFTRH on its HUI Symmetry plan.  A drop below this week’s lows puts it under extreme threat.

I’d really like to see silver get off its backside and get going.  I’d like to see more flags prove not to be bear flags, like RGLD.  I am going to stick with the Symmetry plan (up to point 3) for now until such time as it is negated by a breakdown of the would-be flags.