I don’t want to sound like a pom pom waving cheerleader, but I do want to be plugged into reality. The reality is that the ‘best’ HUI target of 280 +/- has thus far held, been tested and held again. Huey is dealing with the SMA 50, however.
Technically, this could be another FOMC bull trap but with a correction that is almost 5 months in the making and with the reduced risk profile we can respect the view that HUI’s bear trap breakdown to ‘best’ support at 280 +/- may well have been it.
One helpful indicator for gold stocks (esp. juniors and explorers) is the TSX-V index busting out a new high. As you can see resistance (viewable on a longer-term chart) is above but there is some room before it gets there.
The TSX-V/TSX ratio can be watched to see if it makes a new high as well. That would be helpful. If it does, it would be a guide higher for not only the precious metals, but the balance of the inflation/reflation/resources trades, as it was in May-June.