HUI – Gold Bugs Index (Last:445.35)

Gold Bugs Index (HUI) price chart with targetsIt was only after I’d prepared the chart accompanying this tout that I realized HUI had breached the pattern’s midpoint support at 486.57 by way of a gap-down opening. This very strongly implies that the ‘D’ target at 418.23 will be reached, notwithstanding the fact that we bought promising lows yesterday in GDX and GDXJ.  The only potential mitigating factor I can find in the chart is the prospect of a final low coming not from the point ‘A’ indicated, but from the one just beneath it at 605.37.  That pattern would play out to 427.48, somewhat better than the worst-case 418.23.  In any event, you should be ready to bottom-fish in both spots — aggressively if by camouflage.