HUI’s monthly chart shows a H&S with a big fat Head. It’s target is 100. Ahhhh… run away!
Also shown is an Andrews Fork encompassing the entire bull market. The lower tine meets a ‘C’ (final corrective leg) of a would-be A-B-C correction in the low 300’s. Doable and bullish.
So what is it going to be? My sense, with the Cook article having been fully digested letting us all know that gold stocks are all done, is that it would be the A-B-C scenario whereby the entire cyclical bear out of 2011 will have been an extended and grinding correction of a secular bull as opposed to the flash correction of 2008.
The tough thing is that to get to ‘C’ HUI has got to break the neckline to Mr. Fat Head up there. So naturally, answering the question of just what is in play on the HUI’s big picture is going to be for all the marbles. A third scenario is that the neckline holds with a double bottom to last May. That maybe be wishful thinking, but we’ll know very shortly.
For clues going forward it will be best to dial in to shorter technical time frames and the sentiment backdrop.Subscribe to NFTRH Premium for your 25-35 page weekly report, interim updates and NFTRH+ chart and trade ideas, or the Free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at NFTRH.com and Biiwii.com. Oh, and follow @BiiwiiNFTRH. Support free quality content; please disable AdBlock on Biiwii.com... and thank you! Add to SocialTrade