As noted in NFTRH 417’s simple Precious Metals segment, we’ll reserve some details for in-week management of the gold sector, especially regarding gold stocks and HUI’s shorter-term situation.
There is really no change to last week’s update, but I realize it never hurts to review so here is the view of HUI still attempting to bounce after the fill of the June 2 gap and breakdown to the SMA 200.
Let’s review the objectives in the event this resolves into a bounce, as anticipated.
The range is 220, which is the August low to 230, which is where the broken trend line meets up with the declining SMA 50.
A rise above 230 would start to open the door to talk of a completed correction, but the favored plan remains an extended grind up and down within a multi-month correction (it has been 2.5 months since the top, which began what technically became a correction when the SMA 50 was lost in August).
So HUI has already done good corrective work and below the SMA 200 has greatly reduced risk to gold stock players. But we remain patient and aware that down the road the gap at 180 could come into play.