HUI did the anticipated pullback to the SMA 50 (nearly to the 62% Fib) and rebounded, as per the ongoing bounce plan.
Today Huey bumps his head up against the channel top and is looking for a test of the SMA 200, which is starting to ease downward (therefore, on a bigger picture it would be an important signal depending on whether it breaks and holds above or fails). So says Captain Obvious.
The target we’ve had all along (since March) for this rally is 305 to 307. The high this morning is 303. Close enough. Target acquired.
The rally has done what it needs to do if it is just an ill fated bounce. So traders should be thinking one way (like about their original trade objectives) and people like me, another (like about the amount of gold/silver stocks I’d want to hold for personal portfolio balance and also, as always, the macro fundamentals that would change for the better when gold starts out-performing the inflationary/cyclical stuff).
Final thought: Profit taking is still legal. I am telling myself that, if no one else.
