Tuesday, January 26, 2010

$HUI looks interesting here

$HUI - Gold bugs index - seems to be at an important juncture and looks interesting here.

Had a bounce off MA(200) today and finished right at an important support level. If this support holds, a run up to 440 - a 10% move up - could very well be on the cards where it will face trendline resistance and MA(50)

On the other hand, a failure to hold the present support could take us all the way down to 360, the next support level, a 10% move down.

The index does look a bit oversold, so odds would be in favor of a move up.



As far as gold miners are concerned, I follow NGD, EGO and AUY but I am sure you guys have your own favorite gold plays. I recommend keeping an eye on your favorite gold plays for the next few days.

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