source: Yahoo Finance
Almost two weeks ago I posted an update on the HUI index, which is an index of unHedged gold mining stocks. Gold and Silver and HUI Index
I posted a series of levels on the index to watch carefully.
"Based upon this low the following price levels for the HUI are now in play.
245.21
268.70
280.36
290.84
299.06
312.97
334.96
357.40
370.86
These numbers will have already started to pop off on the HIGH, LOW and CLOSE of the market. These numbers will tend to act as important "targets" for the market."
The black line on the chart represents the 312.97. Notice for the past month the HUI has been trading along this line.
Suddenly this afternoon the HUI broke hard over this level. If this holds into the close ( Iam posting this with an hour left in trading) and next Monday then the first target for the HUI would be 334.96.
In the way of patterns the HUI has for the last three weeks been consolidating in a "Bull Flag" with HIGHER LOWS the first coming in on March at 290.43 versus the "290.83" level posted above.
The 312.97 will now act as support, if that breaks look out below. But for now, above 321.97 is an important line in the sand. Above this level and the bull runs whereas below and the bears will dash the gold bugs hopes and dreams.
Mind you that the Mining shares are moving while gold and silver are getting hammered.
Always nice to see a precious metals market with the miners leading the way!
Peace out and Stack On!