On 9/24 using the daily chart below we noted…
“A simple chart showing HUI in lock down below former support, now resistance. It’s bouncing today but that means little until/unless Huey can take back 325 and hold above it.”
And so today here is HUI 326. It’s not conclusive, but it’s doing what would be a first step to recovery in tentatively taking 325 in-day. The ‘get out of jail’ point is 342. Of much importance to a constructive macro view for gold stocks will be the Gold/SPX ratio and its ability to hold the up trending SMA 200 (so far, so good).
I am still partially hedged and trying to be patient. I added to my NGD position this morning and assuming indicators like Gold/SPX remain good, want to upgrade the quality of holdings in general. Generally however, this chart gives us an idea of HUI’s technical progress. It’s still a correction within a firm uptrend.