It’s as simple as that. HUI is on a plan that includes if not favors a drop to the confluence of lateral support and the lower line of the downtrend channel, as it slips below the neckline once again. Daily chart below.
The latest indignity in Goldbugville comes after that stupid #silversqueeze promotion which, in hindsight is all too fitting. I am disappointed in myself for not calling it out more strongly as a scam perpetrated upon naive precious metals investors. I have not decided whether I’ll sell anything at this point. Due to diversity in the portfolios I’m doing just fine because other markets are according to (reflationary) plan as well.
As to the chart, the lateral support zone beginning just below 260 is the favored target. But this is the gold sector and the most naive of the gold/silver bug “community” put in a promotion that if poetic justice comes into play, could crash HUI to 170. Not a prediction but certainly a possibility. That would in my opinion be a big time buy opportunity if a lesser one does not come about in the 240s or 250s.
So let’s see if Huey can hammer and negate this breakdown. If so, it’s back to the grind where only a rise above the SMA 200 – which is interestingly coinciding with the upper channel line – would put us on bull alert. If not, the yellow dot shows the next objective.