Earlier this week I reported that the HUI gold stock index was at a critical juncture. Some signs pointed to a breakdown below support at 167. But at the same time if that support level held, it set up a potential intermediate term bottom.
|What if that trendline at 167-68 holds? It looks as though HUI is coming into a 6 month and 15-18 month cycle low. A rebound that clears the blue 6 month cycle line at roughly 175 this week would signal at least a good sized intermediate term rebound. It’s too early to tell if this would lead to a major cycle upturn, but tall oaks from little acorns grow. Every big cycle upturn starts with a short term rally. So I would be taking long positions should HUI clear 175 this week or next.|