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.
Bottom Line
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.
