The analyses of the gold and the HUI interest many persons, then here is a small explanation of the current situation of this indication.
I. Two resistances.
There are two resistances passed so that the HUI is free.
1. The first one is 240 points to go out of the bear canal.
2. The second resistance is 255 points to exceed the old summit of the HUI.
If ever, there is failure at the level of 240, so the HUI could return to the low zone in surrounding of 165 points, I don’t believe in this solution.
1. The classic rules of technical analysis can, more or less, identity this current figure as a flag, what means that if the HUI goes out by the height of this figure, increase which will follow will be the same dimensions that this figure.
2. If the HUI goes out by the height objective is 335 by simple pendulum.
But the previous one waves of increase showed that the HUI been often much more powerful.
1. The HUI shows, that each other of its waves of increase, are very big, if ever this wave of increase is as the previous ones, objective of the increase will be 395 points. I already explain it in my previous analysis of the HUI.
The HUI remains very bullish, it just nearly crosses these last two resistances to reach new summits.
Dr Thomas Chaize