Still work to do before the next phase of the PM bull market $375 is the number HUI needs to sustain above to push PM stocks a lot higher.
HUI trade ideas
Correction Coming?If Gold is finishing its Primary Wave 3, then the miners would expect to join it. But instead of them being in an impulse patten, like gold. The miners seem to be in a Wave3 Ending Diagonal pattern, in a larger C wave correction.
Gold Miners(HUI) - Massive Upmove ComingGold Miners have been underperforming as compared to Spot Gold Prices. Going forward Gold Miners should outperform Gold.
GDX, NUGT some of the Gold Miner ETF's.
Kindly like and share if you like this idea. :)
Gold miners looking good!If the miners can finally break out of a long-term corrective triangle, then there is potential for an 80%+ move over the next few years.
GOLD👑 (XAUUSD) KEY LEVEL TO WATCH 👀AND WHY 15 MAYTraders, in order to buy and sell, make decisions based on price history and use patterns to identify future price movements.
Successful pattern trading requires the acknowledgement of identifying trends, consolidations, support resistance levels and reversal to place stops and targets to forecast price movements.
Here i will discuss one of the key reversal patterns and present you examples of them:
The basic ABC pattern has been a continually reliable trading signal.
The ABC Chart pattern comes into many other patterns. If you look at the Elliott Wave, the beginning form of 0, 1, 2, (0A, 1B, 2C). The ABC is also named 1-2-3 waves. The ABC—exists in other patterns such as Gartley or the AB=CD, and can also be found in pennans, triangles, rectangles, head and shoulders, double tops, double bottoms.
Anybody can learn how to recognise this ABC pattern and then trade it. They can actually use this knowledge to create a dozen more patterns because of its basic structure, which exists in a dozen or so patterns.
Traders would be able to use the ABC Patterns knowledge in all market conditions across the board. That’s the critical part of trading success.
When you identify the ABC pattern, you can embed it into other patterns surrounding it. Those are the patterns. For example, the pattern with the highest success rate that I’ve got in my research is the 121 pattern, which is like two ABC one after the other . The 121 can be a continuous or reversal pattern, and when it forms, the success rate is high.
The ABC is one of the superior patterns to trade.
ABC BULLISH PATTERN
See example below:
another example fiferent market
Like I mentioned above, we can embed the ABC into other patterns surrounding it.
For example:
The ABC Chart pattern and its related AB=CD Chart Pattern are prime examples of "Symmetry" in the markets. These "Harmonic" patterns help traders to identify buying and selling opportunities in all markets and in all time-frames.
The AB=CD
Example below :
OK, you may be getting overwhelmed by these patterns.
Let's talk about DXY and why?
One of the most popular indices to watch for gold investors is DXY.
We all know or at last the majority of traders can use DXY in correlation with Gold, this means: if Gold price goes down, DXY price goes up.
Let me put this into context...
Yes, more patterns...
DXY Double Bottom:
Gold AB=CD Bearish
We have identified our patterns and their correlation with other markets.
Here, the analysis of gold could be beneficial in order to forecast the price movement.
Let's take it further... what about relative to Gold? What other market could help us put everything in context here?
HUI: again one of the most popular indexes to watch for gold investors, but different to DXY.
HUI which consists of a basket of 15 gold mining stocks. The index is positively correlated to gold.
This means if Gold goes down, HUI goes down.
What do we have with HUI in terms of patterns?
Well, since HUI relatively correlates in a similar manner, the price structures are very similar.
HUI Chart Below:
HUI chart we can identify a 121 pattern emerging, basically 2 abcs one after the other, with a price completion zone around 200.
Let's take it further:
Silver 121 emerging below
This is my conclusion to look for beariness in gold next week from 15 may 23'
Gold AB=CD Bearish,
DXY Double Bottom
HUI 121 Emerging
Silver 121 Emerging
Long Term Gold Miners.Possible Triangle in a B Wave correction. Then, maybe, setting up for a final C wave move up to $500 or more.
Which would be followed by either, a final very quick 5 wave move back to 2015 low, or a more slower correction in a Y Wave back to similar levels.
HUI on a weekly trend channel chartThe Bear trend still dominates the Gold Miners in this Trend Channel Chart Weekly view. A break-out and back-test of the obvious Bear shoulder is needed before the Bull Swing can get going. Look to the Trend channel rails for price targets.
Expanding ending diagonal (extended 5th wave)Here's my analysis of HUI, gold bugs index. . In my analysis, wave (1) , (2), (3) and (4) all have 3 wave structure, with wave (4) more complex and time consuming than wave (2). This phenomenon usually points to a 5th wave extension. Another observation is wave (4) overlaps with wave (1), which leads to the possibility of an expanding ending diagonal. Following through this thought process, wave (5) should also be a 3 wave structure and it will usually be 1.618 times the entire move measured from the beginning of wave (1) to the end of wave (3).
HUI has completed the AB wave and is now in the C wave of this extended 5th wave. I have used the end of wave (4) as the starting point for wave (5) and the target price is 1.618 to 2 times the entire move, more inclined towards the latter, around 100 price point.
That's all for now
Gold Miners Quarterly Log ChartWhat is good for #gold miners, is also good for #bitcoin (or any other instrument).
Until 31K-35K is cleared, be wary of rug pulls.
#fintwit
$HUI Lewis and the news ...The $HUI is looking ripe for a breakout of this ascending triangle. The resistance line will break this week. Look out above ....
HUI and the gold minersWaiting for a breakout. If it happens this would likely signal a shift in favour of the gold miners and a multi-year bull market.
HUI vs Gold monthly ratio chartIf gold is cheap vs US equities...
Then miners are even cheaper vs US equities.
Beautiful +9 year base for miners vs gold exemplifies the risk vs reward profile of miners.
Don't say I didn't show you this!
Strong underlying momentum in Precious MetalsMy 5-7 year outlook. Amazing fundamental and technical picture for precious metals and for the gold & silver mining companies. They are very undervalued relative to the underlying metals they mine and the fundamental picture gets better and better. They're growing cash flows and making very large margins of over 35% on average. Inflation is here and the Federal Reserve & Government are trapped with rates near zero as the economy is beginning to roll over. Large debts of over 130% Debt/GDP necessitates interest rates remaining capped (Fed funds below 2% for at least 6-10 years). Fiscal spending to grow the economy with yield curve control and currency devaluation to devalue the debt load with ignite a commodities and precious metals bull market and cycle that hasn't been seen since the 1970s.
HUI vs Gold's weekly ratio chartRepeat after me... gold miners are cheap!
Target 0.21 ratio in Q2 2022
NYSE Arca Gold Bug Index's Quarterly Log ChartQuarterly chart for $hui looks great... specially if it can close Q1 back in arc with a March close above 290.
Wick would simply of touched breakout line and be remembered as noise from smaller time frames.
Target range is 510-570 before 2023.
Deconstructing HUI Gold Bug Index's Quarterly Log ChartLots of stuff going on here. First lead my arc's "reverse symmetry guidance. Angle of entry gives reciprocal energy on the way out. Helps establish target AND time to reach! Win-Win. Then add pivot lines (previous resistance turned support). Last piece of evidence, gold old fashion Stoch. Strong gains occur from bottom transition to top range. Enjoy!
Will it be a good winter?As long as the market doesn't crash. Because that will temporarily bring us out of trend.
Long term analysis of gold and mines versus DJIIn the next next 2 years gold and HUI will rise significantly while DJI will fall by further 50%.
HUI:Gold ratio which is still quite low (0,16) will rise to about 0,45.
Enter mines now and exit after HUI:Gold exceeds 0,4.
Gold Stocks vs Financials : Near Critical BreakoutLong Gold stocks HUI and short Financial XLF ratio close to 15 level breakout. Above and we are off to the races. Note the post 2008 crisis long term outperformance.
Mining index at 2013 &'16 peaks resistance areaTriangle broke, sentiment hot, buying pullbacks $GDX, $GDXJ, $SIL
