HUI – Gold Bugs Index (Last:487.48)

Gold Bugs Index (HUI) price chart with targetsThe narrow failure of yesterday’s rally to push above the 502.15 peak from May 12 was a cautionary sign, since bulls with designs on impressive new highs would never have been so timid.  However, they’ll have a chance to turn things around if the pullback hits 483.71 (see inset), a minor midpoint support. If it’s taken out, though, we could expect the selling to continue to at least 476.85.  These targets will remain valid as long as 490.58 is not exceeded to the upside first. Either can be bottom-fished with a stop-loss as tight as 5-6 cents.  ______ UPDATEIt was all over for bulls on the opening bar, since HUI gapped down to 475.68 in the first minutes of the session.  This refreshed the bear trend as well, creating a minor impulse leg that projects most immediately to 467.31.  Bottom-fishers would have been stopped out for a small loss.