Just a quick update on the HUI triangle consolidation pattern we looked at yesterday which shows the price action heading down to the brown shaded double price objective, between 182 and 171.25. This should represent a decent place to buy your favorite precious metals stocks.  The pink shaded areas measures time and price for this impulse move down.

One of the things I’ll be looking for as the HUI moves lower will be some type of reversal pattern which will most likely be a double bottom or H&S bottom. We have yet to confirm the low for the first reversal point. Keep in mind these trading range can be very difficult to trade until you see the bottom for the first reversal point in place. We know where the top of the trading range is that will give us an area to shoot for. Hopefully we’ll get to do a few swing trades during the formation of whatever consolidation pattern develops always keeping the big picture in mind.