Despite a few Bull/Bear market swings, the Gold Bugs Index (HUI) has spent the past 20 years within a broad rising channel.
The Gold Bugs Index tracks several Gold Mining stocks and is an excellent gauge for gold sentiment.
As you can see in the chart below, gold sentiment (and gold mining stocks) have been in a downtrend since 2011.
BUT, the Gold Bugs Index (HUI) is currently testing the top of a bullish ascending falling wedge at (2).
And there is clear (and important) support below.
This pattern should see resolution in the coming weeks. Gold Bugs hope it resolves to the upside as it would signal a short-term shift in Gold sentiment (bullish for Gold stocks). Stay tuned!
Gold Bugs Index Chart – Breakout Coming?
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