HUI Gold Bugs Index buy signal with a weekly candlestick hammer signal and an hourly chart with an ending diagonal or (5 wave wedge or descending wedge). Everybody knows how I love the triangle, well the ending diagonal is even better than that, a change of trend and the move is fast, usually. I’ve been watching this thing for a while now. You can also look at the Stochastics momentum indicator and see that it’s in the over bought territory, don’t worry, the price usually retests itself. Your favorite (strongest) gold stock (if you have one) will mirror all of the other gold stocks as well. Some stocks are earlier than others, some are later, but generally mirror one another.
The daily chart gives you a different view of basically the same thing, a couple of channels with the ending diagonal. Another one of my favorite indicators is the candle stick hammer. The hammer is another great indicator, usually found in a chart after a long decline. The monthly chart shows you my target price of the HUI Gold Bugs Index. I still think that the price is going to tag that MA, but it might not. It would be better from a bullish point of view if it did tag it.
Keep in mind that it’s not the end of the month and it’s not the end of the week. In order for the weekly and monthly chart to indicate a buy on those to time spans the indicators would have to be the same, however, the hourly and the daily time span is holding the power right now, so trading those two time spans till Friday March 8th, at 3:50 PM EST. If the hammer is still there the weekly indicator holds.
The longer the time span, the more power the chart gives you. If your trading a yearly chart and there’s a bullish pattern breakout. That chart would hold for a decade or two. Right now the HUI Gold Bugs Index buy signal is in the hourly and daily chart with the ending diagonal or (5 wave wedge or descending wedge).