The hui chart (or gold bugs chart) on the weekly is very interesting. As you can see we got up to the 525 level on the hui chart , and since then GOLD and some other metals has performed rather badly.
Right now the HUI CHART is indicating that things are moving into oversold territory and we have retraced 50% of the March 2012 - Sept 2012 move.
The indicators are slowly starting to suggest that soon a bottom will be formed. There is no confirmation just yet, but the first warning shot has gone off, and we will continue to monitor this in the coming weeks.
What is does mean is that good strength should come back to gold and silver and some of the mining stocks very soon, so as astute investors we must keep a close eye on the HUI CHART (gold bugs index) in the next month or two. :-)
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