As per the in-day notes, the BPGM is pinned at zero. A level not seen since the bear market. As also noted, its SMA 200 can eventually grind its way lower within the bull market trend. But things are pretty extreme, regardless. There could be a lot of volatility as a good bottom gets put in.
Also per the notes:
I am going to start looking at gold stocks as HUI/GDX are in range of a landing zone (HUI 650, primary target 575-600). The last thing I want to do is miss the lows and have to chase preferred items. The second to last thing I want to do is buy too soon. So I am going to be very discrete and selective.
And so, being a reluctant hero, I bought back RGLD, which is roosting on a clear daily chart support level.
Back on the sector, I have not used HUI charts in updates, instead favoring GDX. But that was only because TradingView did not have live HUI charts. Well, now they do, so it’ll be my default preference.
HUI daily is starting to tick the next valid support levels.
But the big picture chart says “sure, there may and probably will be additional downside, but risk/reward now favors a bull view beyond the chop and grind of finding a sustainable low.”
Just providing some perspective. Not calling a bottom, but I certainly don’t want to be too bearish while every gold bug and his uncle is scattering.
