"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 12 hours OPEC ‘Supergroup’ Keeps Oil Exports Subdued
  • 13 hours One Belt, One Road, One Direction for Precious Metals
  • 15 hours Vicious Trio Keeps Bitcoin in Chokehold
  • 17 hours How Infrastructure Is Driving A Commodity Boom
  • 18 hours What’s Really Happening With Venezuela’s “El Petro?”
  • 20 hours Gold Bull and Bear Markets
  • 1 day 5 Big Drivers of Higher Inflation Rates Ahead
  • 2 days U.S. And China To Face Off Over Aramco IPO
  • 2 days Gold Bulls, Brace Yourselves – Fed Hikes Are Coming!
  • 2 days Stocks Fail to Hold Gains, But Still No Correction
  • 2 days Cryptojacking: A New Threat Vector To Critical Infrastructure
  • 3 days Why The Next Oil Boom Will Be Fueled By Blockchain
  • 3 days 5 Things Investors Should Know About China this New Year
  • 3 days Is The South Korean Crypto-Drama Finally Over?
  • 3 days Miners’ Rally? What Rally? Watch Out for More Fake Moves!
  • 3 days Four Percent 10-year Note Yield Will Be a Floor Not a Ceiling
  • 3 days The End Is Near
  • 4 days 5 Record Breaking Gemstones Even Billionaires Can’t Buy
  • 4 days Irredeemable Currency De-tooths Savers
  • 4 days CFTC Offers Bounty For Crypto Pump And Dump Whistleblowers
One Belt, One Road, One Direction for Precious Metals

One Belt, One Road, One Direction for Precious Metals

China's launch several years ago…

Decision Time

Decision Time

Last week, I mentioned that…

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.


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


  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

Don't Miss A Single Story