An FYI that HUI’s 2nd target is being ticked today. That is the 255 area (current: 257). This also corresponds with the neckline of the yellow shaded pattern for what that’s worth.
Huey is getting overbought on the daily chart as it parties with the cyclical, risk ‘on’ stuff. That is not the best environment for gold stocks to be bulling in. I felt that HUI could bounce better than the SMA 50 this time and that is now in the books. It’s got upside potential to the down-trending SMA 200 (274), which would still be within a downtrend.
The bottom line is that sure, the technicals could improve out ahead and sure the macro fundamentals could turn at any time. But as yet, none of that has happened and it is still bounce ‘on’, but just a bounce. To boot, the bounce is now attaining another one of its targets. Traders be aware. Risk is, in my opinion, rising.
