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Miners - Ready to Rock' n Roll?
As mentioned here on Jan 4th: (http://tinyurl.com/aazqe6n) on the very important consideration in looking at HUI's long-term trend on Fibonacci retracement levels, prices tested its 38.2% retracement around 398 level once in the past week and managed to close above it at about 400 level on the weekly chart.
Indeed, let me emphasize here, assuming this bull-trend since 2000 is to stay for coming months or years, the 38.2% or about 1/3 correction should suffice and ready the bull to roam again!
Under most normal circumstances, strong bull-trend should correct only 1/3 while a less strong bull-trend should correct not more than 2/3 of their respective yearly uptrend without breaking the trend-line.
As mentioned before, since HUI's support sits solidly at 350 versus its 50% Fibo. level at 329, in the worst case scenario, we should not see a correction go pass 350 if this bull trend were to stay alive.
In other words, if HUI finally bottoms at its 38.2% Fibo., this multi-year bull should be considered as a STRONG BULL in any case with more surprises to come!
In conclusion: i think we are right at the "capitulation process" of HUI already and price action in coming days should be rather important and interesting to say the least!
HUI - Multi-year bull trend in Fibonacci consideration (dated Jan 3rd. 2012)
HUI (weekly) - Put in a credible "doji" that signal a reversal is on the card
HUI (daily) - tested last August's low and put in a small hammer