Friday, March 1, 2013
HUI / GDX - The Fuse is Lit
The HUI Gold Bugs Index is comprised of 16 large gold mining companies. They have been taking a beating for quite a while and I have been waiting to see a particular technical setup to identify to ideal location for a final bottom. Thursday's close provided that setup and I would like to show it to you in this post.
What follows are daily charts of 8 HUI miners and the Market Vectors Gold Miners ETF (GDX) that are simultaneously providing a positive divergence BUY signal. A number of the remaining 8 HUI Gold Bugs members are literally inches from yielding the same signal.
Also, I have identified the trend line break BUY signal location for each with a green line. When price reverses direction upward it will trigger a confirming round of BUY signals.
The fuse is lit. One good reversal of sentiment should set off a chain reaction that will bring a smile to my face - and maybe also yours.
Cover you ears.