On Monday the chart below was included in a post called HUI Gold Bugs Index Symmetry, before it had a chance to start making this week’s candle. Excerpted from the post:
“There can be a final drop this week but ultimately (going strictly by technicals, the fundamentals are another matter to be managed along side) if symmetry holds it would be a positive week for the miners.”
Well, I am not going to pretend I had a good week. It was an aggravating week at best. But at least Huey hung on and did indeed have a (barely) positive week after dropping early in the week (right off the bat on Monday, as it turned out) as speculated upon.
If symmetry holds, a new up leg would generate off of this right side shoulder. But even if that happens, according to a more detailed game plan in NFTRH, gold stocks would not necessarily be out of the woods just yet. So if we are lucky enough to go bullish, do me a favor, eh? Keep your balance and don’t listen to the cheer leading that will be sure to crop up.
Have a good weekend.
There is a growing presence out there talking about a potential Inverted Head & Shoulders (IH&S) on the HUI, which NFTRH has had going since mid-late last year. Below is a simple view of it, with last week’s ‘Week 2 down’ making perfect sense (symmetrically speaking) with ‘Weeks 1 & 2 up’.
In reviewing the second of the two HUI weekly charts of the previous update, I want to blow the view up and illustrate the symmetry between the current ‘down from neckline’ vs. the previous ‘up to neckline’.
Well, gold bugs should not necessarily be afraid. As noted in an NFTRH Update last week the seemingly frustrating lack of silver leadership is not really something to worry about. An HUI-GSR positive correlation has happened before; like from 2000 to 2003 at the birth of the secular bull market.