HUI’s correction went impulsive on the daily chart yesterday with a breach of the external low at 530.01 recorded back in late November. If the futures rally without going lower, the midpoint of the next leg down would represent a potentially excellent buying opportunity. However, if the Gold Bugs Index extends its losing streak with a breach today of the 525.00 low notched on November 16, that would be cause for concern. From a structural standpoint, the index could fall to as low as 490.00 in search of support. Alternatively, it would take an upthrust to at least 555.75 to return the lesser charts to bullish vigor.
