Following the big upward surge in the precious metals, I wanted to see whether it was a one-day short covering panic or whether we were seeing a continuation of the gold bull market. The daily chart below shows the action prior to the big surge which took gold above both of its moving averages.
Below we see HUI, the NYSE "gold bugs index." Note that the pattern we see here is that of a huge head-and-shoulders bottom. The P&F target is 316. This formation has been building for many months, and thus when the latest surge arrived, the surge can hardly be seen as a sudden one-day short covering panic. If HUI can hit the 264 box, I expect an upward explosion.
The precious metals are still distrusted and even hated by the general public, Before this bull market is over, I expect to see a mad rush and melt-up as the pros ... Log in or subscribe to continue reading.
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