The HUI - Big Week Coming
posted Jun 4, 2004 at 05:55PM
Fib Ratio Study #1
Fib Ratio Study #2
The technical terrain is very simple. The bulls have to get a weekly close over 200. Period. End of story.
Otherwise we have a failed retest of a three year long trend-line
Fortunately the daily charts show promise of short-term strength, given half a chance. The stochastics are in bullish allignment. There is nothing to indicate that the weakness last week was anything more than some needed backing and filling. It put in a nice candle on Friday above Fib support levels.
The weekly chart is more ominous however. The bulls have to start bringing their "A-game" to the market.
A weekly close 3.5% under the 65 week moving average (say 182) has extremely bearish implications. If capital preservation is your primary goal then you may not want to let it get that far.