HUI Gold Stocks Index Ready to Break Down
Commodities / Gold and Silver 2011 May 19, 2011 - 11:45 AM GMTBy: Ronald_Rosen
A French curve applied to the monthly logarithmic chart of the HUI has four points of contact. The curve at the top has been indicating resistance and the HUI now appears ready to break down.
HUI MONTHLY LOGARITHMIC CHART
Prior to the discussion of QE # 2 the HUI was fully prepared and ready to begin a vicious and final [C] leg down to a new low beneath the [A] leg low of 150.27. This would have been Major Wave Two. The [C] leg would probably have bottomed at LTD # 5 low. Once the bottom was in Major Wave Three would have begun.
“In a regular flat correction, wave B terminates about at the level of the beginning of wave A, and wave C terminates a slight bit past the end of wave “ E. W. P. regular flat correction
HUI MONTHLY
QE # 2 was hinted at by Ben Bernanke and the Federal Reserve in August of 2010. From that point forward the flat correction in the HUI was aborted. It has, since August of 2010, morphed into an expanded flat correction. A final [C] leg down in an expanded flat should bottom lower than the [C] leg in a regular flat correction. This means that the [C] leg down in the HUI should bottom well below 150.27. The low will most likely occur at LTD # 1 low. We know that the biggest moves tend to occur on either side of Delta Turning Point # 1.
“Far more common, however, is the variety called an expanded flat, which contains a price extreme beyond that of the preceding impulse wave. In expanded flats, wave B of the 3-3-5 pattern terminates beyond the starting level of wave A, and wave C ends more substantially beyond the ending level of
wave A.” E. W. P.
HUI MONTHLY
The ROSEN MARKET TIMING LETTER is available through Welles Wilder’s Delta Society International. Once there, click on Products and Services. The cost is $35.00 a month. www.deltasociety.com
By Ron Rosen
M I G H T Y I N S P I R I T
Ronald L. Rosen served in the U.S.Navy, with two combat tours Korean War. He later graduated from New York University and became a Registered Representative, stock and commodity broker with Carl M. Loeb, Rhodes & Co. and then Carter, Berlind and Weill. He retired to become private investor and is a director of the Delta Society International
Disclaimer: The contents of this letter represent the opinions of Ronald L. Rosen and Alistair Gilbert Nothing contained herein is intended as investment advice or recommendations for specific investment decisions, and you should not rely on it as such. Ronald L. Rosen and Alistair Gilbert are not registered investment advisors. Information and analysis above are derived from sources and using methods believed to be reliable, but Ronald L. Rosen and Alistair Gilbert cannot accept responsibility for any trading losses you may incur as a result of your reliance on this analysis and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Do your own due diligence regarding personal investment decisions.
Ronald Rosen Archive |
© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.
