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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 is the founder of goldstockbull.com. He previously worked in data analytics for the world's largest research firm, consulting to Fortune 500 companies globally. Jason eventually leveraged those skills to trade successfully full-time and after helping friends and family optimize their investments, he launched Gold Stock Bull and The GSB Contrarian Report newsletter. Jason is a cycles investor with a contrarian eye for identifying undervalued assets. He has built an expertise in both the precious metals and cryptocurrency markets. Jason believes in honest money, limited government, decentralization of power and enjoys studying alternative economic models.