HUI (daily) is pulling back as expected to test support at the area where the SMA 50 is rising to meet the SMA 200 and the channel breakout point. Our target has been 293 to 300, but the SMA 50 has risen to 296, so let’s now call the pullback target range 295 to 300 (+/- as usual).
As a side note, here is the daily view of HUI’s also expected pullback in terms of the S&P 500. Thus far it is normal and looking to test the SMA 50.
But here is a positive behind the scenes. As the inflationist gold bugs sell out, long-term yields pull back and long-term Treasury bonds rally (TLT shown here trying to break out from a pattern neckline), we have what should be a positive, not negative, in play for gold stocks. If yields were rising while gold stocks pull back I’d have more concern.
If this situation remains as is, it should be a positive for the miners in the near-term, at least.