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Gold Stocks HUI Update

Just a quick note to point out that while the HUI did momentarily exceed our 353 trigger point, it did not close above 353 and thus has failed to generate the buy signal that we are waiting for. As you can see in the chart, the HUI spiked on Wednesday 8/23, but our exact mark at 353 proved to be tough resistance and the HUI promptly bounced off and headed lower.

However, the good news is that although we have triple-topped around 353, an ascending triange is forming with the HUI posting consistently higher lows.

HUI Ascending Triangle

Action: Sit tight and wait for the HUI to close above the resistance at 353. After that, we expect a violent gap up, quickly testing the new resistance at 400. A bit of patience will be rewarded with a boatload of profits.

By | 2006-09-04T23:45:42+00:00 August 31st, 2006|Gold & Silver Commentary|

About the Author:

Jason Hamlin is the founder of Gold Stock Bull and has been investing in precious metals for over 20 years. Jason spent nearly a decade in analytics for the world’s largest market research firm, before finding success investing full time. He launched Gold Stock Bull in 2005 and turned his focus from helping fortune 500 companies to helping individual investors. Jason is a student of Austrian economics and a proponent of cryptocurrencies such as bitcoin and ethereum.