HUI Update…The Set Up is There

This long term daily line chart for the HUI shows it’s now, quietly and unassumingly, approaching that all important 2008 crash low again at the 150 area. This is a good illustration of what I mean when I talk about how a stock will often times build a consolidation pattern just above, just below or right on top of an important trendline before it’s broken. Since the all important low last November the HUI has been carving out this H&S / triangle consolidation pattern right on the brown shaded S&R zone. This consolidation phase is giving the HUI the energy it’s going to need to break to new lows below 150. The setup is there.