Printer Friendly

eMail Article

May 20, 2008

HUI - Daily and Weekly Status
by Gary Tanashian

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/

Disclaimer: biiwii.com does not recommend that any trading or investment positions be taken based on views expressed on this site. If you speculate or invest it is suggested that you consult a financial advisor qualified in your area of interest.

Copyright © 2005-2008 Gary Tanashian

Image rendition and html coding Copyright © 2000-2008 SafeHaven.com

« BullionVault.com -- Buy gold online - quickly, safely and at low prices »
« Honest Money: A History of U.S. Gold & Silver Currency -- by Douglas V. Gnazzo »

« Opinions expressed at SafeHaven are those of the individual authors and do not necessarily represent the opinion of SafeHaven or its management. Articles are available via RSS/XML. Please visit RSSHelp for instructions. »