NFTRH+; Weekly HUI

The weekly chart of HUI shows the Handle consolidation having been broken to close last week and follow-through in the opening hours of this week.

Yes, it’s a breakout. The price is in a congestion zone of resistance and this week will tell a lot about the prospect of a new leg to the rally. Our 305-307 target is history and now the battle is between ‘bounce only’ and real rally aiming for new highs. I am seeing some positive signs, for example in the HUI/Gold ratio and the HUI/SPX ratio.

Weekly RSI is positive and looking nice above its EMA 20. MACD is negative but up triggered. Any pullback would preferably hold the channel breakout in order to keep things constructive for a greater rally. Also, the weekly EMA 20, which is a historical support/resistance marker, is just below that line and in an area of support.