The target for HUI has been 220 since resistance just below 200 was broken. Of course that 220 level is subject to a +/- tolerance. Today the overbought index hit 217.92 before recoiling. Is that it for the upside? There’s no way to tell. I’ll guess that it’s not, but that is just a guess. It could be a refresher before going to or through the target.
SLV’s pattern targets 17.50 (approx. 18.50 for silver). It too is getting a reaction today. Silver as well has been getting overbought. It’s not hard to imagine the move ending when it gets very overbought, which is how silver often rolls.
I did a public post talking about gold’s vulnerability to the media’s ‘fear trade’ as it approaches a big picture target. The bottom line is that the best of the rally is probably in.
I have taken a few partial profits and will look to either take more or hedge, whether there is additional short-term upside or not. I continue to see 195-200 on the HUI chart above as key support and what could well be a new buying opportunity after a correction. I think the sector has made an initial bull move with more to follow later. We’d seek to confirm at that support level.