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HUI - Daily & Weekly Status



-- Posted Tuesday, 20 May 2008 | Digg This ArticleDigg It! | Source: GoldSeek.com

The daily chart of HUI shows a bullish Huey heading toward some short term over bought readings. For the record the AROON indicator, which I neglected to include in the daily still shows a down trend. Fibonacci retrace levels are shown to illustrate that in the short term at least, HUI remains in a corrective mode to the DOWN trend.


Why have I remained positive on the gold miners technically and held the core throughout the correction? Because the weekly chart remains more than fine. Until such time as weekly RSI & MACD fall below the green dotted lines shown, any pullbacks are to be looked at as opportunity. I don't expect such a failure any time soon. A short term pullback to support is unlikely to bust the MACD & RSI.


With the broad market's risk/reward starting to stink from a technical perspective and with the gold stocks having assumed a more traditional counter-cyclical stance, the setup appears to be in place. While traders may want to look for a place to take short term profits, getting too cute trading in and out will likely prove costly at some point soon.

 

Gary Tanashian
http://www.biiwii.com
http://www.biiwii.blogspot.com


-- Posted Tuesday, 20 May 2008 | Digg This Article | Source: GoldSeek.com




 



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