Source Yahoo Finance
The HUI ended lower -1.53 points (-0.89%) with a CLOSE at 170.63. On the daily chart, the fast stochastic is rising with a positive crossover and out of oversold territory. The slow stochastic is descending with a negative crossover. MACD is descending with a negative crossover of a descending Signal line. Divergence is up and under the zero mark.
Source Yahoo Finance
GLD ended lower -$0.50 (-0.43%) with a CLOSE at 115.81. On the daily chart, the fast stochastic is flat to rising and embedded in oversold territory. The slow stochastic is flat and embedded in oversold territory. MACD is descending with a negative crossover of descending Signal line. Divergence is down and under the zero mark.
Source Yahoo Finance
SLV ended lower -$0.21 (-1.44%) with a CLOSE at 14.42. On the daily chart, the fast stochastic is flat and embedded in oversold territory day. The slow stochastic is flat and fully embedded in oversold territory. MACD is descending with a negative crossover of a descending Signal line. Divergence is down and below the zero mark.
The main purpose of this blog is to demonstrate that the HUI trades in an orderly fashion both in "price" and "time".
I publish daily target numbers well in advance to demonstrate the orderly fashion in which the HUI moves. If the HIGH, LOW or CLOSE is within 0.50 points of a daily target number it is a "hit".
I posted the following "bear" target numbers on May 22, 2018.
181.07
179.67
178.47
177.43
175.75
173.12
170.43
168.81
I removed the Bull target numbers since today the June 28th low was breached.
Yesterday I posted: "For tomorrow, the goals are fairly much the same, look for the Bears to again press the HUI down to the 170.43 level. For the Bulls, the goal is to maintain contact with the Bull target level of 174.46."
The HUI opened once again with a gap lower at the LOW which came in at 169.17 (+0.36 points) for a "hit" of the Bear daily target level of 168.81. Then somewhere out of left field the HUI rallied, most likely from stuffed bears taking profits, to the HIGH of the day at 173.69. The Bears regained control and pushed the HUI into the CLOSE at 170.63 (+0.20 points) for a "hit" of the Bear daily target level of 170.43.
The Bears accomplished their goals for the day driving the HUI to the 170.43 level and also hitting the next level below at 168.81. Nice and rather orderly action despite all the chaotic movements in the HUI.
For tomorrow, look for the Bears to again press the HUI down to the 168.81 level. Additional Bear target levels below 168.81 are: 165.93; 163.11 and 161.71. If we get down here without any rally then on a longer term basis 147.00 is possibly in the cards.
I remain long the HUI, this is a core position. I am still looking for a "summer rally" despite today's action. When I look at the charts I see a LOW for the move being hit today but the LOW CLOSE of June 28th of 170.52 held. A close below this number will certainly call into question any reason to hold these positions.
GLD - both the fast stochastic and the slow stochastic are fully embedded in oversold territory, a sign of further weakness. Yesterday's buy signal was not elected. There will be no meaningful rally in GLD until the stochastics are no longer embedded in oversold territory.
SLV - crushed lower with an embedded fast and slow stochastic, a sign of further weakness until these stochastics come out of oversold territory.
These are just my thoughts and observations, not advice etc.
Please share your thoughts, comments, upvote, follow.
As for Friday, good luck and happy hunting!