gold producers set for collapse or large rally

The HUI has broken down below its trading pattern support but is not collapsing so my guess for now is that this is a false break just as it had a false break to the upside in Sept last year. If I am right, we should be very close to a large rally. Of course I might be wrong but this is the most oversold it has been in 1.5 years (on the RSI).
This is only the 2nd time in 3 years that the RSI has gone marginally below 30, and the first time marked a bottom which led to an uptrend which gave a 75% move higher.
Trying to pick exact bottoms is never easy but now would be a far safer time to buy (or hold) gold producers than Sept last year when the index was at a high and breaking out.
Buying at times of very oversold conditions works most of the time. It's never easy to do but it's usually the right thing to do if you think about your timing.