Below is a two year daily chart for the HUI Index which I first showed when the HUI broke above the double bottom hump to start its bull market. I call this chart the reverse symmetry chart as shown by the red arrows.
How a stock comes down, especially in a strong move, will affect its reverse symmetry back up over the same area. It’s more of an art than a science. You can see the rally off of the mid-January low found a little resistance at 182 before it broke through.
Now it’s testing the next overhead resistance line at the 208 area and has been finding some resistance, which we should initially expect. Yesterday was the fourth time that the HUI tested the 208 area from below. A breakout above the 208 area will put the next area of resistance on the map at about 250, which would happen fairly quickly as the decline back in 2014 was pretty steep.
If the HUI fails to break out right there at 208, then support will show up at the previous high at 182 or so.