HUI daily has finally filled the upper gap at around 160. That was target #1, along with the SMA 200, which is declining toward that area (currently 162.64). The next resistance level is 170.
HUI weekly shows this resistance area from a longer-term perspective. The upper bound of that area (170) has a lot of overhead traffic.
HUI monthly shows what could be a profound crossroads from the current price level. Break through here and take out 170 and though there will always be volatility, the sector would appear to be well on its way, technically.
- We have been constructive to bullish on the fundamentals for some time now. But the resistance areas shown above need to be taken out in order to get the technicals in line, beyond what has been a bounce so far. Trends are still down and while today’s higher high (to October) is good, the major trends will not change until the daily SMA 200 is taken out and the SMA 200 is turned upward by continued positive price activity.
- I cannot play swami with regard to the FOMC. My guess is that they raise the rate and introduce some dovish language. But they could surprise and hold off on a hike, they could hike and not change much of anything.
- Meanwhile, the gold sector could sell off on good news, ramp higher on good news or tank on bad news.
- What I can say is that the fundamentals have been marching higher for many weeks now and we are still looking to Q4’s reporting in Q1 2019 as a time when a larger group of investors may be compelled to take interest in the sector due to anticipated improved quarterly results.
- Understand whether you are a trader or investor. This TA status update is simply meant as a tool for you to apply to your style.