The HUI ended lower -0.84 points (-0.42%) with a close at 197.67. On the daily chart, the fast stochastic is flat and fully embedded in oversold territory. The slow stochastic is flat and in oversold territory for the second day. MACD maintains a negative crossover of the Signal line and both are descending in negative territory. Divergence is flat and well below the zero mark.
GLD ended lower -$0.94 (-0.76%) with a close at 122.68. On the daily chart, the fast stochastic is flat and fully embedded in oversold territory. The slow stochastic is descending flat and in oversold territory. MACD maintains a negative crossover of the Signal line and both are descending in negative territory. Divergence is down and well below the zero mark.
SLV ended lower -$0.16 (-0.99) with a close at 16.03. On the daily chart, the fast stochastic is flat and hovering just above oversold territory. The slow stochastic is descending and the K line is in oversold territory. MACD maintains a negative crossover of the Signal line and both are descending. Divergence is down and well below the zero mark.
The HUI continues its downward trek. The HUI opened lower at 196.46. The Bears quickly pushed the HUI to the LOW of the day at 196.20. The Bulls, what is left of them, managed a small counter rally pushing the HUI to the HIGH of the day at 200.39. From there, the HUI meandered into the close at 197.76.
Not much to report today. The range appears to be tightening up again and from tight ranges come big moves. Will the Bulls mount a counter rally? The HUI is way oversold at this point and a rally of some sort is likely to develop within the next two sessions. By tomorrow's close, if it is below 208.62, then the working hypothesis is that the HUI will continue to trend lower into the end of December.
I am currently neutral in the market. No real reason to chase the short side at this point. As for going long, there may be a trade in a counter trend rally. If the Bearish trend hypothesis is correct, then any counter trend rally should last only 1-3 days, setting up a decent shorting opportunity. I posted Bear target numbers in yesterday's post for anyone interested in putting them on a chart to follow along with all the fun.
For tomorrow, if the Bears can take out today's LOW, the goal is the 194.82 level. For the Bulls, take out today's HIGH and drive the HUI to the Bear target level of 204.16.
GLD and SLV look ugly. There is a potential buy signal on SLV, but at this point it looks to me to be high risk and low reward.
These are just my thoughts and observations, not advice. Please share yours.
For Friday, good luck and happy hunting.