HUI big test coming

This daily chart of the HUI shows our expanding triangle formation pattern that has been in place for close to a year now. Expanding triangles can break either way just like any other pattern. We are approaching the bottom rail again which will be the 4th touch. Just like gold and silver the HUI is entering a critical test. The bottom rail has been a good place to buy precious metals stocks over the last year. The bottom rail is also your line in the sand. If you  are holding precious metals stocks you can set a sell/stop below the bottom rail for whatever your risk tolerance is. I’ve labeled the reversal points in red numbers and as you can see we have 5 completed reversal points now in play making this a reversal pattern if the bottom rail gives way.  The 480 area is most critical to hold.