Are We There Yet?

Let there be no doubt that the gold mining stocks have been on fire this week, but has there been a change in trend?

The HUI Index of gold mining stocks has been a serious downtrend since April of this year.

A downtrend is defined by a series of LOWER LOWS and LOWER HIGHS. By contrast an uptrend is defined as a series of HIGHER LOWS and HIGHER HIGHS.

Unfortunately the answer is no uptrend yet. The HUI still has a LOWER LOW on the charts. Arguably the HUI posted a HIGHER HIGH on Tuesday.

In order to have a change in trend the HUI still needs to post a HIGHER LOW and following that a breach of the most recent HIGH.

At best the HUI went into a neutral phase with the chart having a LOWER LOW and a HIGHER HIGH.

Gold' downtrend remains intact. Gold has rallied off its recent lows back up to prior support which is now resistance.

Silver is another story. Silver did recently post a HIGHER LOW and on Tuesday posted a HIGHER HIGH. My only concern to calling this a change in trend is that silver is stalling at prior support which is now resistance.

In summary, the mining shares may have shifted into neutral; gold remains in a downtrend; while silver is on the launch pad but needs to launch for a final call of a trend change.

Peace Out and Stack On!

Keep your treasure close, as there be pirates about!