And by the way, we were cautious due to the failure of HUI to make a higher high (red arrow) well before the index ever broke down from the channel.
"I think it is pretty clear that I am a precious metals and gold stock bull. This is because I am bullish on a secular bull market that is in a massive consolidation with potentially very bullish implications to come.
But I am also a day to day, week to week chart reader and an unbiased view of HUI's daily tells me...
- HUI lost its short term uptrend channel after not making a 'higher high' within the channel
- HUI has found some support at the top of our big picture support zone of [xxx to xxx, edited]
- The index is in a classic setup to rise a bit to test the breakdown, i.e. a potential Bear Flag
- If it is a Bear Flag, new lows would be likely, with downside parameters of the above noted support zone, down to[xxx, edited]
- The lower HUI goes over the coming weeks, the better the risk vs. reward proposition becomes in my opinion
Things are likely to get LOUD in the coming weeks. People should tune out noise as best they can and be prepared.