Reviewing Different Time Frames on the HUI/Gold Ratio

Using HUI/GLD for the daily chart of an important sector leading indicator, we see a ratio price that is above the declining SMA 50 and below the declining SMA 200. It really needs to get above the SMA 200 and turn both moving averages up in order to really get us on bull alert. The lower panel indicators are green across the board and that is constructive, obviously.

hui gold ratio

The weekly is fairly attractive looking as it sticks its nose out across a trend line, crosses MACD up and inches RSI to 50+. The trend remains down, however.

hui gold ratio

And finally, the big picture monthly chart we’ve been keeping an eye on in NFTRH for several months now. It shows an analog to the 1999-2001 specimen (actually a better looking pattern than that one) in the making.

hui gold ratio

While the above makes me feel bullish on the sector, other charts of nominal HUI I looked at have mixed messages. We are getting (so far) a key short-term breakout on the daily, the weekly still has a concerning issue with a would-be Symmetrical Triangle and the monthly does now, as it has for many months now, give me bullish feelings. We’ll update the views from all of HUI’s time frames in NFTRH 462.

The thing is, with all these different time frames you really do have to weigh them against each other and decide who you are, a longer-term holder or a flashy trader. I am definitely not trying to be the latter anymore and even when I was, the results were spotty at best. It’s the big picture macro moves that make the money.

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