Tech Analysis of Precious Metals Miners

[plyka]

A crash below the 200-day moving average for the HUI? I don't know. It is a very tough call. I can see both a quick crash down below the 200-day, and a rally up. The water is incredibly merky in the gold stock world.

The most likely scenerio, in my opinion, is first a rally to the 255-260 level, followed by another decline to below the 200-day moving average. I just can't see these things breaking down from here-----unless they are much weaker than i had originally thought.

Another very likely scenerio, is that they simply continue on trending sideways, until the HUI hits its major uptrend line---then a blast off occurs. The more i look at the HUI, the more it looks like some sort of flag formation. In this case, we would most likely trend sideways until the weekly MACD starts to bottom out. This i think, may take another month or more.

I must say, any talk about the gold stocks from my part is merely a guess right now. I don't have any clear signals pointing in any direction. In my opinion, anything can happen.

When i'm in this predicament, i like to stick to the overall belief------we are in a gold bull. Combine that with the fact that we have been in a correction for 4-5 months now, and in my opinion, holding up very well. I like to be IN rather than OUT in these type of cases. Since even if we sell off from here, it will be a quick fall and rise.