In bouncing to the daily EMA 20, HUI has filled an upside gap. There is another just above 330, which can fill as well. We can allow for a test of the channel top and the now down-sloped SMA 50 before getting too excited that the correction is ending. Meanwhile, I’ll stick with the view that the correction can finish at 280, if not 260. That’s the greedy buyer in me.
I am certainly open to being wrong, but am calling it as I currently see it. This is a technical thing. The fundamental side is improving. Until HUI takes out the overhead, the status is the same. With gap #1 filled, it is no longer hanging there like a short-term bullish fruit waiting to be picked. It remains to be seen whether Huey’s got the reach to get to gap #2.