• 658 days Will The ECB Continue To Hike Rates?
  • 659 days Forbes: Aramco Remains Largest Company In The Middle East
  • 660 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,060 days Could Crypto Overtake Traditional Investment?
  • 1,065 days Americans Still Quitting Jobs At Record Pace
  • 1,067 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,070 days Is The Dollar Too Strong?
  • 1,070 days Big Tech Disappoints Investors on Earnings Calls
  • 1,071 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,073 days China Is Quietly Trying To Distance Itself From Russia
  • 1,073 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,077 days Crypto Investors Won Big In 2021
  • 1,077 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,078 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,080 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,081 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,084 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,085 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,085 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,087 days Are NFTs About To Take Over Gaming?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

Miners (HUI) - Carving a 'Reversed HS' Instead?

Acknowledging the potential of an invalid multi-year head & shoulder pattern, I attempt to identify what potentially could be a reversed head & shoulder (RH&S) formation instead, right in front of us now!

  1. HUI's monthly chart coupled with its Fibonacci Fan from the peak of 2011 is guiding a highly probable RH&S as can be seen here.

HUI Index

  1. Indeed, without violating its multi-year major support trendline, Fibonacci Fan is depicting an interesting pattern whereby HUI could be charting a RH&S pattern and looking for a decisive new intermediate uptrend most likely in the 2nd half of 2013 (as this is a monthly chart).

  2. Looking at Gold versus HUI and HUI versus SPX ratio charts, we could see that both are approaching multi-year support level, i.e supporting the case that HUI is fast approaching its bottom.

  3. On HUI-to-Gold ratio, it is almost the same level as in 2008's low.

Gold:HUI

  1. On HUI-SPX ratio, it is right at the support of the multi-year uptrend line.

SPX:HUI

  1. Putting past performance of HUI versus Gold in perspective, HUI outperformed by 80% (Jan 2000 - Dec 2012), 357% (Jan 2000 - Feb 2008) and 63% (Nov 2008 - Aug 2011) respectively. The point here is that HUI has consistently outperformed Gold for the major trend and key intermediate uptrends!

HUI versus Gold

HUI versus Gold

HUI versus Gold

  1. In conclusion, on the assumption that HUI's major support trendline is not to be broken, we could (i) look forward to miners in starting to outperform gold and equities again soon (ii) expect miners to carve and confirm a new intermediate uptrend most likely towards the 2nd half of 2013.

 

Back to homepage

Leave a comment

Leave a comment