Gold Bugs Index Testing Critical Price Support!

Last year’s rally in the price of Gold brought renewed excitement to gold bulls (and gold bugs).

And it all makes sense…

A pandemic, political unrest, and lots of money being handed out.

But Gold fizzled out in late fall after a big rally. And it’s been trading sideways to lower ever since. This shows up in the today’s long-term “monthly” chart of the Gold Bugs Index (HUI)… we saw a big rally hit a long-term support/resistance line at (1) and reverse lower at (2).

This reversal lower, though, is within a near-term bullish up-trend channel. And $HUI is now testing its up-trend support line at (3), along with lateral support (marked by its 2016 highs).

Gold bugs DO NOT want to see a break of price support at (3). Such a breakdown would be bearish for gold prices. Stay tuned!

Gold Bugs Index (HUI) Chart

gold bug index hui reversal lower analysis image february 15

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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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