Tag: hui index

Gold Miners Flirting With Key Trendline

Gold Miners Flirting With Key Trendline

So far the Gold Mining sector has failed to staged a strong rebound from the very important support level at around 160 on the HUI Gold Bugs Index. While the price still remains above support, it has not yet moved above the 200 day moving average.

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Gold Mining Index Shows Bullish Signs

Gold Mining Index Shows Bullish Signs

We looked at these charts just a few weeks ago. The charts still look pretty so I’m doing a quick update. Price continues to base above the 152 support level. MACD is rising steadily on a buy signal. The transition, of course, is from downtrend to uptrend after three+ years of steadily lower prices. The blue Andrews pitchfork is describing what could be a nascent uptrend in this sector.

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Some Bullish Elements On The Gold Mining HUI Chart

Some Bullish Elements On The Gold Mining HUI Chart

The financial crisis in 2008 knocked the wind out of precious metals stocks and HUI returned to the 150 level once again. After testing this long-term support level, price zoomed higher, this time increasing 400% in less than three years. Today we find the HUI back at the 150 level after more than three years of painful declines. There are some really bullish aspects to this chart.

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Huge Upside Potential In Gold Miners

Huge Upside Potential In Gold Miners

Since September 2012, the S&P500 and the gold mining indexes decoupled from each other. Today, the disconnect between both is huge. From a technical perspective, it appears that the gold miners are testing a resistance line which goes back spring 2013. One should closely monitor the ongoing price action in the gold miners. If they would be able to break through the current price point (250 area), then the good days of gold and silver miners could be here. That would indicate underlying strength in the precious metals complex, and hence in the metals as well.

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Miners Index Charts Show Domed House and Three Peaks

Miners Index Charts Show Domed House and Three Peaks

Both the Domed House and the Three Peaks Patterns have violent up moves, followed by strong reversals. It is important to keep in mind that all markets return to the mean. The charts are suggesting that odds favor an upside move for the Miners and a correction for the SPX Index on the intermediate term trend.

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The HUI Has Penetrated Its June Lows, Gold and Silver To Follow

| November 28, 2013 | Category: Investing
The HUI Has Penetrated Its June Lows, Gold and Silver To Follow

The June low for the gold mining sector was believed to the bottom for gold miners and as such presented a buying opportunity for the precious metals community. At the time we greeted this event with some trepidation and described the capitulation as a capitulation of sorts, but not a final one. In any bull market we have to climb the wall of worry and gold and silver did exactly that in the first phase of this bull market as many objectors denounced its progress. This wall of worry will always be with us as gold clings on in the hope that there is a U-turn coming and the bull […]

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Gold, Silver And The Mining Sector Have Not Bottomed Yet

| November 19, 2013 | Category: Price
Gold, Silver And The Mining Sector Have Not Bottomed Yet

As a bull on both gold and silver I do expect that this sector will shine once again, hopefully in the not too distant future. However we are still of the opinion that this gold bull market remains in a bear phase for now. The timing of market directional changes is critical to the success of any investment. We all know that it is impossible to pick the very top or the very bottom of the market and so enter and exit the market with absolute perfection. That just does not happen, but it is incumbent on us to try and get as close as possible to these turning points in order to maximise our profits.

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Contrarian Gold Stocks

| June 14, 2013 | Category: Stocks
Contrarian Gold Stocks

The extreme contrarian appeal of gold stocks today is readily evident both technically and fundamentally. Gold stocks as a sector have only been this oversold one other time in their decade-plus secular bull, and that was during 2008’s crazy stock panic. When prices move too far too fast in either direction, sentiment gets unsustainably excessive. And then a mean reversion soon reverses the trend.

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Gold Prices Experience a V-Shaped Bounce

Gold Prices Experience a V-Shaped Bounce

For those taking close interest today there was an interesting move in gold prices as the below chart shows. A ‘V’ shaped bounce of some $35.00 or so just before the close must have given a few gold bulls a real scare. Gold dropped briefly below $1720.00 so we can only imagine that someone has made a rather fortuitous purchase at this level. However, if this sudden drop had occurred a few minutes later then we would have had a dramatic closing price for today’s trading session in New York. Granted we would only need to wait 30 minutes or so before trading re-commenced when we assume that a more […]

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Gold & Silver Stocks – A Dramatic Change in Fundamentals or a Short Term Anomaly?

Gold & Silver Stocks – A Dramatic Change in Fundamentals or a Short Term Anomaly?

Stock exchange is a very volatile, emotion-driven place. Even though most of the time one can predict future moves in particular assets with decent effectiveness, every once in a while abrupt and unexpected market moves take place. And we have just seen such violent and heavy declines in precious metals mining stocks. Sadly, no one is able to foresee the future with 100% certainty and this is why diversification is such a crucial concept in investing. It would have certainly protected gold & silver investor’s profits or at least diminished their losses had they invested not only in mining stocks but also in metals themselves. Now, the following question arises – is […]

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Gold Up, Gold Stocks Get Pummeled

Gold Up, Gold Stocks Get Pummeled

It’s been another one of those odd ball trading sessions where gold prices managed to finish the day up $2.50 to close at $1727.40/oz, but the gold mining stocks, as evidenced by The AMEX Gold BUGS (Basket of Unhedged Gold Stocks) Index, known as the HUI, fell 21.55 points to 447.96 or a staggering 4.59%. If we look back two years to the start of 2011, gold was trading at around $1400.00/oz so we can clearly see an increase in its value. At the same time the HUI was trading at around 560 so we can clearly see that this sector has suffered a decrease in value. So those investors […]

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Putting Gold and Gold Stocks in Proper Context

Putting Gold and Gold Stocks in Proper Context

The precious metals complex had a great rebound at the end of the summer but is now in the midst of a correction. Recently we wrote that the correction was nearing an end. We believe that to be the case. A short-term bottom could occur sometime this week. However, the precious metals sector was unable to retain much of the very strong momentum it previously had. Thus, the metals and stocks will need some time to confirm support and generate positive momentum before they have a chance of breaking to new highs. That being said, we wanted to take a broader view and analyze the sector in its current context […]

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Gold & Silver Mining Stocks Hold Well Despite Metals’ Correction

Gold & Silver Mining Stocks Hold Well Despite Metals’ Correction

Based on the October 12th, 2012 Premium Update. Visit our archives for more gold & silver analysis. Despite a lukewarm, lackluster first half of the year, Gold has so far risen by 13 percent in 2012, nothing to sneeze at. The price of gold rose by about $215 in 2012, with most of the gains, $165 worth, having materialized in the last two months. This was after the U.S. Federal Reserve announced its plan to resume buying bonds to prop up the economy. The underlying bullish case for gold remains intact, given the prospect of indefinite loose monetary policy. Central banks have been supporting gold this year and it’s no […]

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HUI looks strong – Following S&P 500 Higher

| September 19, 2012 | Articles: Gold Silver Stocks
HUI looks strong – Following S&P 500 Higher

The mining shares are seeing some very good inflows of speculative money. The result has been an advance for 8 out of the last 9 weeks. The chart shows the index blowing through resistance levels with relative ease with the next Fibonacci retracement level within striking distance. As the trend is higher, we would expect dips in price to be bought. Initial support for the index is down near the 50% retracement level that comes in near the 505 region. AT some point longs will decide to take some money off the table after a run of this nature but as to where and when this will occur, we will […]

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