$HUI Analysis for 09.02.2007

Monthly chart shows that the $HUI index has been stuck in a trading range for over a year. Current support is off a 34ema, where bulls have been buying. Fibonacci time tool shows the high made in May 2006 took 1.25 times as long as it did for the index to make a low from June 1996 to November 2000. The fibonacci retracement tool shows that the high in May 2006 is resistance at the 2.00 level.

The weekly chart better shows the consolidation for the better part of a year. Within the consolidation/trading range, one can trace out a possible 5 wave pattern into the 786 fib resistance level. The chart shows early buying the last 2 weeks.

The daily chart shows early buying, with index overcoming prior LIS, and closing above it. IF the low can hold, THEN look for next upside target to be a test of the prior high at 373.10.