The bounce we were speculating about is here and now it is time to manage its upside parameters. A simple weekly chart shows 188 an ultimate decider on whether the bear continues and if the bounce is strong enough, that would be the best bounce target as well.
But just because there is important
support [ed. resistance] (with a lot of hot air between it and current levels) does not mean the bounce will get all the way to that point. A daily view of HUI shows some more potential limiters.
1) The EMA 10 (gold line), which has mostly entrapped HUI in its downtrend since last summer.
2) The SMA 20 (mid point of the Bollinger Bands) that has contained any bounces that the EMA 10 had not contained.
3) The declining SMA 50, which by the time the bounce matures could possibly be right in line with the 188 area resistance.
Just trying to establish potential road maps for you as always. Now let’s see how the reality plays out. There is always a chance that we’ve already seen the bottom, but there is a lot of traffic up above that would put a lot of pressure on that view and there are still targets open on the downside.
So this is a bounce only until it proves itself to us. We don’t owe it anything.