Let’s keep it super simple. This pullback actually builds in the potential for a more extended rally than if Huey had just kept going up into over bought territory.
The top line has been changed from resistance to support after the breakout. This is a classic retest. As long as support remains intact, the target is the SMA 200 at 219. This pullback is where someone who wants to be positioned based on a bullish view, would do so.
If support fails, then we could be back on the bear express, for some testing of the lows or worse. I would respect that support area at 194 to 195. But there is more support at the low-mid 180s as well. Also the SMA 50 is at 187.
Current support at around 195 is very clear and being watched by basically everybody. It is important because a loss of that line puts HUI back below the neckline of a bearish pattern. But there is more support just below it, FYI. Meanwhile, HUI is still on a breakout, that it is testing.