On 23 Mch I posted a chart of the HUI stating that because the RSI was so oversold that I expected we were witnessing a false break. The bearish sentiment reinforced that view although that did help drive the HUI down just a little more.
Last night, gold was back up to 1691, and the HUI is back inside its 18 month trading pattern. We can't be sure if it will stay there. There is still a chance of it going below again, but so far it’s playing out as I expected. A false break (for now at least) and a bounce after the RSI indicated the HUI was strongly oversold. Need to watch for clues on where to from here. The fundamentals support a large rally medium to long term so I am less concerned very short term.
KGL Price at posting:
$1.32 Sentiment: Buy Disclosure: Held
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