Reply #1: WrapUp by Ike Iossif: HUI - XAU [View All]

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CONCLUSION

All the indicators have formed patterns that three out of five times turn out to have a bullish resolution. In fact, the very same patterns were observed last year between late July and early August as the HUI and the XAU embarked on a 20% rally; and they were also observed during the 2003 rally. Our expectation is that the XAU will pull back to the 92-91 zone, which represents a triple support point, and if it holds, we will see a reversal to the upside that will carry the XAU to its upper 50 week volatility band around 110-112.

If support doesn't hold and the XAU declines below 90, then we will wait to see where it finds support and then we will re-evaluate.

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