It is a post-FOMC holiday week with Stimulus news out. What better time for some confusing market moves?
The FOMC week bounce in gold stocks, which has the potential to end the correction, is getting its test this week.
HUI is normal unless it drops below 284. The gap would actually fill at 283.83, so we can allow for a little grinding around just below 284, but generally this little rally would be in trouble if that December low is taken out. Unfortunately, then we’d have to put the secondary downside target of 260 +/- back on watch.
RSI has slipped back below 50 but is still in a stance where it is stair stepping upward along its EMA 20. MACD never did go positive but has not triggered down. Making matters more complicated is the mix of the news cycle and the holidays. It’s not a normal market environment because holiday volumes can make market signals less trustworthy.
Playing it by the TA, Huey needs to hold that short-term low or it’s back to the drawing board.