HUI is on the bear flag plan after failing to rise above the SMA 50 and S/T lateral resistance. The best technical target continues to be around the SMA 200 at 280 (+/-). That would represent a test of the major uptrend and is a normal 38% Fib retrace. An extreme situation could bring a test of the pattern top and 50% Fib at around 260.
For perspective however, let’s not forget that the major trend in gold stocks vs. the broad SPX is up. That trend should soon be tested at the firmly rising 200 day moving average. A side not here is that the gold sector’s corrections often precede the broad market’s corrections so we might want to keep an eye on that prospect as well.
