Saturday, June 23, 2007

HUI Update

Yet another Breakout attempt, the HUI managed to climb above short term diagonal trend line resistance. A retest of the broken trend lined and 200 DMA followed.

Support around recent cycle low 317.70 further support at previous cycle low 311.78.

Technical indicators: RSI slightly above 50, PPO had a bullish crossover and seems to be trending higher.

hui chart

It is likely that if the HUI can trade above 344.07 it will aim to 369.69 and further.

The bigger picture: the HUI, Gold, Silver, Etc. - All consolidated for a long period of time so giving a chance to the small technical improvement might be a wise thing to do.

Some index components enjoy a relatively high level of short interest ratio. data : Eldorado Gold (EGO), Randgold Resources(GOLD) ,Coeur dAlene Mines(CDE), Hecla Mining Company (HL) ,Golden Star Resources(GSS), IAMGOLD(IAG).

Check them out (fundamentals ,TA. Etc) – they might be a good play.

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