Last week I posted a weekly chart of HUI showing an apparently routine and a-okay pullback. That remains the case although as written earlier I would have preferred a sharp pullback from 460 to test the April low instead of dealing with the 'potential' right shoulder that is forming now. But whether it is just psychological or not, we have to deal with its 'potential' (measured target of 240) until such time as it goes away. It is not a well formed, rolling shoulder and gold stocks have certainly dealt with would-be H&S's before and negated them, but there is the potential.Unfortunately, if that potential comes to fruition, it will make me very wrong on my entire investment stance as it will mean gold stocks have entered a cyclical bear market. Now, these kinds of fears are hallmarks of bull markets. The plan here is to remain aboard as long as the weekly chart remains intact and view a pullback to that lateral support zone as an opportunity. A lot will depend on the lower panel indicators. If in conjunction with a sharp decline into support, the indicators reset to buying-op over sold levels... well, we know the drill by heart. Then it will be time to hopefully wave goodbye to the hangers-on and proceed with the bull market. Again, it's either that or I am totally wrong in my entire orientation. We will find out soon.
