The Index swings within a negative trend channel. It rebounded on the lower limit of the channel, also the fib retracement 38.2% (170). Since march 18 it climbed with little steps to the next resistance - a falling trend line, that is coming from june 2011. This had to be broken - what happened - to confirm the positive move.
The trend line is now support and has been tested several times.
In the last days the index has moved sideways, veering away from the support-line.
While the index stayed on the same level, RSI has rosen - so there is a positive divergence between the index and the indicator with some probality that hte index will close it. Possibly RSI will fall or go sideways - both would not destruct the positive movement; unless the support doesn´t hold!
HUI has much pace to the upper limit of the trend channel which is at around 200. That would be a gain of 11% from today.
Once reached the limit we have to analyse if the momentum is strong enough to break through the resistance. Shortly behind there is a swing trend line and a double fib retracement! - I think at least at these levels we have to think about taking profit.
No trade advice!
The trend line is now support and has been tested several times.
In the last days the index has moved sideways, veering away from the support-line.
While the index stayed on the same level, RSI has rosen - so there is a positive divergence between the index and the indicator with some probality that hte index will close it. Possibly RSI will fall or go sideways - both would not destruct the positive movement; unless the support doesn´t hold!
HUI has much pace to the upper limit of the trend channel which is at around 200. That would be a gain of 11% from today.
Once reached the limit we have to analyse if the momentum is strong enough to break through the resistance. Shortly behind there is a swing trend line and a double fib retracement! - I think at least at these levels we have to think about taking profit.
No trade advice!