In yesterday’s update we noted that the HUI index and the ETFs were still in corrective consolidation. After a gap up this morning, that remains the case as they have pulled back. From that update:
The gold stock sector remains in corrective consolidation, despite the big bounce today.
Overbought readings have been worked off and it could break out of consolidation from here or it could drop and fail the SMA 50.
Here is daily HUI, still in the flag/consolidation after an opening pop higher.
The 15 minute charts of the ETFs show that this morning’s opening gap has been filled. That is a good thing. But if the consolidation continues let’s be aware of the gap below 41. That gap does not exist on a daily chart but it’s a sneaky little bugger here on the 15 min.
GDXJ did the same, pulling back to fill this morning’s opening gap. It’s got another at 57.70. That gap does not exist on the daily chart.
So I don’t want to make too big a deal about those lower gaps while at the same time I want to point them out. If the consolidation/correction continues they could easily fill. Meanwhile, the consolidation wears on.