The scenario noted below obviously depends on HUI losing the neckline, which it is thus far holding as S/T support today. The target does not activate until/unless HUI takes out the neckline.
Keep in mind that this is just a man staring at charts and advising potentials. There are other potentials in play, including a full out crash. But here we find daily HUI in a little bearish pattern.
Take the pattern with a grain of salt because yes, it is bearish looking but no, it is not a Head & Shoulders because for a bearish H&S to be valid it would come at the end of an uptrend, not the hard downtrend this one has formed at. Also, there is no volume on the HUI chart (although volume on GDX has generally been higher to the downside than the upside, which is not positive).
So we have Huey holding the neckline of an ugly little pattern today. What I find interesting though is that if the neckline is lost the pattern’s target would be around 178, which…
…is a support area per the weekly chart.
Just an FYI for your consideration, on something I noticed.
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Sounds reasonable to me. This time we have not had a 2003-2007 period, during which pm stocks rose against the macro fundamentals. Arguably, there is less froth in the pm market compared to 2008.
Simply brilliant point, Bart. They’ve been getting dope slapped for 2 years now.
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