I always keep the same analytical method of the HUI as in the previous studies because it was effective.
I. Bullish tendency of the HUI.
1) Bullish HUI.
The HUI is always in a long-term bullish tendency, even if, at the moment, it marks a break in a horizontal canal between 275 and 400 points. A rest of goldmines and silver is normal after the previous wave of increase which led the HUI in 400 points.
2) Support 275 points.
The zone 275 +/-seems to me a very solid support, a major zone of purchase and sale, in case of break of the support (I do not believe in it, it would give an objective to the decline of 150 points in the HUI).
II. When the HUI is going to set out again?
1) What signal?
The next big wave of increase will take place when the HUI will break its resistance in 400points (the precedent summit).
2) In how long?
The previous rests of the HUI lasted between 8 and 24 months, it is thus very likely that the HUI breaks its resistance of 400 points in 2007. The graph of the HUI gives at the moment not enough information to this subject.
III. Objective of the next increase of the HUI?
1) Method n°1:
The classic method of the pendulum - > The HUI evolves in a canal between 275 and 400:
400-275 = 125 points
400+125 = 525 points
2) Method n°2 :
It is a method already used in my previous two technical analyses. Every wave of increase of the HUI seems to take 30 points on the previous one, what gives an objective of 165 points of increase, it would lead then the HUI in 565 points (400+165 points).
For those who wish directly the conclusions without reading the explanations, nevertheless reduced at least:
- The HUI is always in a long-term bullish tendency.
- After the break of 400 points the HUI should reach 525 565 points minimum.
The patient investors should, once again, be rewarded for their perseverance by means of their goldmines and of silver in 2007.
In November is one particularly dangerous month to speculate in stock exchange. But there is the others: in July, January, September, April, October, May, March, June, December, August and February. Mark Twain
Dr Thomas Chaize
* These technical analyses allow me to explain in only one page what would ask me for 100 pages of explanations, fundamental analyses. I use the technical analysis to summarize my opinion built on personal researches.