Source Yahoo Finance
The HUI ended higher +5.90 points (+3.38%) with a CLOSE at 180.45. On the daily chart, the fast stochastic posted a positive crossover and the K line has risen out of oversold territory. The slow stochastic posted a positive crossover but remains embedded in oversold territory. MACD is rising but maintains a negative crossover of a descending Signal line. Divergence is up and remains the zero mark.
Source Yahoo Finance
GLD ended higher +$0.60 (+0.48%) with a CLOSE at 125.37. On the daily chart, the fast stochastic posted a positive crossover and the K line rose out of oversold territory. The slow stochastic is flat and remains in oversold territory. MACD is flat to descending with a negative crossover of a descending Signal line. Divergence is up but remains under the zero mark.
Source Yahoo Finance
SLV ended higher +0.18 (+1.17%) with a CLOSE at 15.57. On the daily chart, the fast stochastic posted a positive crossover and is trying to get out of oversold territory. The slow stochastic posted a small positive crossover but remains in oversold territory. MACD is rising but maintains a negative crossover of a descending Signal line. Divergence is rising but remains below the zero mark.
The Bulls live! The HUI opened with a gap higher and posted the LOW at 175.66 early in the session. From the there on the Bulls owned the day. The HUI hit the HIGH of the day at 181.81 in the final hour. The HUI then faded into the CLOSE at 189.45.
One day does not a market make. The HUI posted a "buy" signal that needs to be confirmed. For tomorrow, look for the Bulls to take out today's HIGH and confirm the "buy" signal. For the Bears, hold the line or take out today's low and drive the HUI lower.
The "POLAR EXPRESS" rally died last week, so I have yet to calculate new daily target numbers. If the Bulls, confirm the "buy" signal I will post daily target numbers.
I remain long with a small position in the HUI. I did add additional positions but I am keeping it small. I will have a buy order in just above today's high.
On Friday I posted, "[t]he HUI is deeply oversold therefore the internals at some point will favor a rally. When that comes remains to be seen but I will be looking for the following things. First, a large bar to the upside of the magnitude of at least 7 points (the size of the bar itself). Second, the fast stochastic coming out of embedded oversold territory. Third, a positive crossover of the MACD and the Signal line. And finally rising divergence. Until, these appear on the chart, the trend remains down."
Measuring today's bar from Friday's close to today's high (181.81 - 174.54 = 7.27) we get the first item on the chart. Divergence is rising so we have a second item on the chart. The fast stochastic posted a positive crossover but is still in oversold territory, so not yet. The MACD is rising but maintains a negative crossover of the Signal line, so not yet. We have two of the four items on the chart, we shall see what the rest of the week holds.
Did the trend change? The jury is still deliberating but some of the evidence is positive but not yet compelling.
GLD and SLV posted "buy" signals that need to be confirmed.
These are just my thoughts and observations, not advice etc.
Please share your thoughts, comments, upvote, follow.
As for Tuesday, good luck and happy hunting.