HUI October 9, 2017 - Battle for 204.16 - Gold Mining Stocks Rally

The HUI ended higher 2.50 points (1.24%) with a CLOSE at 204.60. On the daily chart, the fast stochastic maintains a positive crossover and is now in overbought territory. The slow stochastic is rising and maintains its positive crossover. MACD is rising and has a positive crossover of a rising Signal line. Divergence is rising and above the zero mark.

GLD ended higher $0.99 (0.82%) with a CLOSE at 122.08. On the daily chart, the fast stochastic has a positive crossover, is rising fast. The slow stochastic is rising with positive crossover and the K line is now out of oversold territory. MACD is rising and posted a very small crossover of a flat Signal line. Divergence is rising and is above the zero mark.

SLV ended higher $0.17 (1.07%) with a CLOSE at 16.02. On the daily chart, the fast stochastic has a positive crossover is rising fast. The slow stochastic is rising and out of oversold territory. MACD has a positive crossover of a flat Signal line. Divergence is rising and is over the zero mark.

The main purpose of this blog is to demonstrate that the HUI trades in an orderly fashion both in "price" and "time". I publish daily target numbers well in advance to demonstrate the orderly fashion in which the HUI moves. If the HIGH, LOW or CLOSE is within 0.50 points of a daily target number it is a "hit". Below are the daily Bear target numbers for "The Fall", first published almost a month ago:

207.50
204.16
201.16
198.81
194.82
188.53
182.11
178.25

The Bulls owned the day. The HUI opened up with a gap at 203.66. The only Bearish move came in at the LOW at 203.10 posted early in the session. The Bulls drove the HUI up to the 204.16 level where the gold mining stocks traded into a very tight range. The HUI broke this range in the last hour of the session with the Bulls taking the HUI to the HIGH of the day at 205.07. The HUI drifted lower to the CLOSE at 204.60 (+0.46 points) for a "hit" of the Bear daily target level of 204.16.

For tomorrow, look for the Bulls to take out today's HIGH and drive the HUI up to the 207.50 level. There is a gap at
206.01 that formed on September 15th, this should be filled. For the Bears, keep contact with 204.16. This rally looks looks like it has some legs. Today, is day 2 of a counter trend rally, if "THE FALL" is still in effect.

The slow stochastic for SLV is now out of oversold territory. It looks like it has room to run. GLD has a gap at 122.90 that formed on September 26th that is now on the table to be filled.

I remain neutral in the HUI.

These are just my thoughts and observations, not advice etc.

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As for Tuesday, good luck and happy hunting.