There is so much to cover in a weekly report that sometimes I cannot be as pointed as I’d like in my wording. Hence, in-week updates like this one to add more color.
HUI is just above former resistance #2 and if it takes out the SMA 50 (blue) and uses this as support the next objectives are the red neckline, the channel top and the SMA 200 (black), in that order.
As originally noted with projecting the bounce, there was a lot of work to do in order to nullify the bounce scenario and go bullish. There still is. HUI would be technically ‘bounce only’ all the way to the SMA 200 at 307. Traders should be aware of this and investors should be aware that the opportunity to buy lower is still in play.
Like gold, HUI did bottom at a valid ultimate downside objective prior to bouncing. But there are others, including the next one at 230, which would represent a full 62% Fib retrace of the post-crash rally.