Though I have been very intolerant with the gold mining sector in seeing our way through its bear market, two items that have been in bull markets since 2013 (KDX a significant one, and KGI a weak one, both including in USD terms) have been held firmly among a small group (with sector shorting as needed/desired until the July puke event when shorting/hedging was stopped).
I depended upon others for fundamental view confirmations and just decided not to out think myself on a couple quality items in post-2013 technical up trends.
But a larger question is whether or not certain small miners of relative quality, in little bull markets, are pointing the way forward for the whole kit and caboodle?
The reason I make a point of it is because these two are breaking their 50 day MA’s, while our ‘bounce’ target for HUI has been to around the declining MA 50’s and a gap fill.
The HUI bounce at around 110 almost had to happen. That was because there was a bottom rail of a downtrend channel right there (as we noted in a real time update as HUI was puking on July 20) and due to washed out sentiment and CoT, as we have also been noting. HUI then sagged down to the 110 +/- ‘bounce’ target.
But there is the case of the stubborn macro funda, which have not reversed trends (to go along with bullish sector funda). So it’s an interesting question that I want to look at from as many angles as possible, which is surely what NFTRH 356 is going to do.
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