My charts and updates can be busy with moving averages and other clutter (like my constant harping about fundamentals and indicators :-)). So once in a while it is nice to strip everything out to the bare bones. These charts are large and clicking them will give a clearer view.
Daily HUI is back testing a break above the top line of a wedge today. The next two support areas, as shown in this morning’s update are also shown here. It’s not the end of the world if Huey does not hole the wedge line. But it would be a notable sign of strength if it does. Best to be prepared for further downward exploration. This not about hope after all, it is about parameters and perspective.
The weekly chart retains the clutter of our old friend the EMA 55 (AKA the old bear market ball and chain). We see the trend line break from the 2016 high and we see Huey above the EMA 55, this time hoping (bad word, eh?) for a different outcome to the string of previous failed bounce events post-2016. The post-September intermediate rally can be interpreted as an uptrend channel as well as the wedge shown above. If we view it that way, the pullback is from a logical area (as we already knew, given the 170-180 target zone).
The way I see these charts, including RSI and MACD, things look very normal. Corrections tend to test normalcy so we’ll see what transpires, a mini or maxi pullback. But things are fine as they stand now. The EMA 55 is at 164 and that roughly coincides with the lower support area on the daily chart at the beginning of the update. We’d want to see that support hold or technical issues would come into play.