Mining the gaps buried far below
Not only in the HUI index, but in several of the stocks I hold and watch some conspicuous gaps (that I personally did not think needed to fill any time soon before last week) did indeed fill today. They were breakaway gaps. The upper gap at 180 is something that I thought could (should, actually) fill late last summer but then the Q4 ‘inflation trade’ got in the way and lifted Huey’s boat along with all the others.
Anyway, that felt like something this morning. We went from world ending to a profitable day. I have not been able to buy gold stocks in crash (to logical support) mode since 2008.
The red resistance area shown was important support that is no more. So it will live up to its new name and offer resistance.
We reviewed this graphic from Sentimentrader in NFTRH 594 and noted…
“Gold bugs be heartened. Well, sentiment-wise anyway. Your fellow bugs are in full flight.”
And today, the reversal. I am not getting too excited though. I think there is a lot of work to do in order to call an all-clear. In fact, after today’s endorphin release the bugs are no longer the leaders in the contrary bullish Olympics.
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