NFTRH; Miners Approach Resistance #3

A brief update to note HUI is now approaching the resistance level of 245 to 250 that we have been noting.

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Meanwhile, the weekly chart gives a little more perspective on the neckline that would be reached if HUI gets up around 250.

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GDX weekly chart shows the ETF approaching Resistance #3.

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With reference to all the charts above, remember that these resistance levels were plotted back when we were anticipating a bounce from the important support equivalent to HUI 205, which kept the bottoming patterns alive and well.

It was more difficult to feel bullish then, and it is apparently pretty easy now.  Take that for what it is worth.  Tuning out all of the noise (all the bullish inflationists suddenly out in force and even the bearish CoT data for silver and gold) HUI is now at a point that we coldly projected as one of 3 objectives when it held the 205 parameter.

A higher high to March sets a course toward a new bull market.  But there is the 245-250 resistance zone to deal with and a higher high does not come into play until it gets above 261.36.  The risk vs. reward for near term price action is not nearly as good as it was a month ago.

This is not a call for anyone to do anything because we all have different orientations.  This is a note to let you know that we are nearing the best bounce target within what still appears to be a good big picture bottoming pattern.  Reactions are likely to come at some point and notable resistance is in view.  At the least, investors should wait for buying opportunities.

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As another reference point, one of our quality leaders, Franco Nevada has already retraced its bear market and is very positive… but at major resistance.