Technical analysis for Gold Bugs Index (.HUI).

Below is the weekly chart for the HUI index and its RSI and MACD. The HUI index had a steep decline from above 500 in March of 2008 to about 150 in October of 2008. Currently the HUI index has broken to the upside of its down trendline, a bullish senerio. The RSI has hit the oversold territory of 30 and turned back up. It has broken to the upside of its trendline just as the HUI index has. RSI close above 50 would be positive for the HUI. The MACD has closed above its Moving Average generating a buy signal. It has also closed above its trendline like the RSI and HUI index.



Below is the Monthly chart for the HUI index along with its RSI and MACD. The monthly charts don't look as good as the weekly. This is because the weekly has to turn up before the monthly. If the weekly chart keeps improving then it will lead to a better picture on the monthly. The monthly HUI charts is still showing a bear market picture and the RSI is still below 50 and the MACD is still on a sell signal.




In conclusion, the weekly view of the HUI index is getting much better but the monthly is still weak. Please never buy or sell stocks based on one or two indicators as illustrated here.

Chris Narcouzi,
cnarcouzi@ne.rr.com

Chris's older posts here.

Related tickers: (GLD), (IAU), (DGL), (GDX),