Since the sector never did give up its positive indicator underpinnings (like HUI/Gold & Silver/Gold ratios) and HUI is popping back above the SMA 50 for today at least, I thought it would be a good time to take a snapshot.
Here is HUI, in its daily downtrend (SMAs 50 & 200 sloping down) bouncing to give the bears some doubt and possibly even looking to fill the gap from last week. I suppose the original bounce target of 190 could also come into play but the picture is not bullish beyond these short-term down and up moves.
We noted in NFTRH 500 that the HUI/Gold ratio had held its pro-bounce stance and today it is bouncing.
Silver/Gold ratio is even stronger. Now, is that a caution at the SMA 200 or is it a constructive move? It’s actually both, in my opinion. Right now the SMA 200 is a would-be limiter but if the ratio were to get above it and grind out an up phase, we’d be talking about something beyond a sector bounce. Patience on the process.
As of now the bounce scenario, which was on life support, has life. The sector has not gone bullish however, in any sort of way beyond said bounce. We’ll of course update if that changes.