• 5 hours A Russian Billionaire’s Space Quest To Save Humanity
  • 8 hours Markets Take Breather As Consolidation Continues
  • 10 hours Economic Woes Weigh On Copper Prices
  • 13 hours World's Largest IPO At Risk Following Drone Strikes
  • 1 day Gold Is Beating Buffett’s Berkshire Hathaway
  • 1 day What’s Behind The Silver Sell-Off?
  • 1 day The Retail Apocalypse Is Accelerating
  • 2 days The Top Tech Stocks Of The Year
  • 2 days America’s Workforce Elderly Workforce To Double By 2028
  • 2 days Toyota Tests Solar-Powered Prius
  • 3 days Why The Gold Rally Flatlined
  • 3 days The Uranium Sector Can’t Catch A Break
  • 4 days Upcoming Fed Meeting Has Investors On Edge
  • 4 days Global Gold Sector Outlines Responsible Mining Principles
  • 5 days China’s Giant Vampire Fund Loses $120B
  • 5 days McDonalds To Roll Out Robot Drive-Thru Clerks
  • 6 days Savvy Investors Are Betting Big On This Little Data Company
  • 6 days How The Government Is Wasting Tax Money This Year
  • 6 days Supply Concerns Halt Expansion On Tianqi Lithium Plant
  • 6 days The World’s Biggest IPO Is Almost Here
Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Rambus Chartology

Rambus Chartology

Rambus Chartology

Rambus Chartology is Primarily a Goldbug TA Site where you can watch Rambus follow the markets on a daily basis and learn a great deal…

Contact Author

  1. Home
  2. Markets
  3. Other

HUI ...Meet Me at The Bottomz Inn?

This is the Question on Everyone's mind.

Earlier this week we looked at the expanding triangle as a possible reversal pattern as it was testing the top rail with a beakout gap. The next two days saw the HUI decline back down to the top of the double bottom hump at 139 where it found support. Yesterdays price action took out the top rail of the expanding triangle again. Today the HUI backtested the top rail around the 155 area and is bouncing. There is no doubt the PM complex is overbought but we now have two possible reversal patterns in play. The double bottom which was the first pattern that showed itself and now the expanding triangle which has an odd number of reversal points, five, which makes it a reversal pattern instead of a consolidation pattern.

Gold Bugs Index Daily Chart
Larger Image

This next daily chart for the HUI shows the double bottom with the flag pole and backtest to the double bottom hump at 139. In a perfect Chartology world what would make the most sense would be for the HUI to form a small consolidation pattern in the area I've marked, trading range, which is the area between our current high and the top of the double bottom hump at 139 which is also the 38% retrace of this impulse move. Again this would be the perfect setup but the markets have a way of faking you out sometimes which it maybe doing right now. Even tho the HUI is overbought there is no law that says it can't get more overbought before the inevitable correction takes place.

Gold Bugs Index Daily Chart 2
Larger Image

Below is a long term daily line chart which shows the HUI is trading right into the brown shaded support and resistance zone right now.

Gold Bugs Index Daily Chart 3
Larger Image

We've been following this long term monthly chart for the HUI which shows the fanlines that have developed during the bear market. Normally when a fanline is broken to the downside many times you'll get a rally that will backtest the previous fanline from below. Right now the HUI is testing fanline #3 from below. The Chart in the ointment.

Gold Bugs Index Monthly Chart
Larger Image

The weekly chart shows the HUI breaking above the top rail of its bear market downtrend channel.

Gold Bugs Index Weekly Chart
Larger Image

This last chart for the HUI shows its double bottom which has formed after an almost five year decline. I mentioned in the past the two patterns that generally show up at the end of a trend is a H&S or a double bottom or top depending on which way the trend has been going, so the double bottom fits in perfectly for a reversal pattern. The HUI is doing all the right thing in here to reverse its major bear market. There is still some overhead resistance to contend with but if the new bull market is beginning the HUI will find a way to takeout that overhead resistance and start making higher highs and higher lows.

Gold Bugs Index Weekly Chart 2
Larger Image

Zombies

Next Week will be very interesting. Stay Tuned

All the best

 

Back to homepage

Leave a comment

Leave a comment