Last week I posted a chart of the HUI 60 minute look showing a possible H&S top forming. Yesterdays action was very constructive in putting that H&S top into question. The right shoulder that has been forming over the last 3 or 4 weeks maybe in fact a small H&S bottom. I was viewing the right shoulder as an expanding triangle in the bigger picture up until yesterday. When we broke thru the top rail that was the first sign for me that the HUI was starting to show alittle strength in here. Now comes the critical part. A backtest from the topside is now in progress with 465 being critical support. If we can bounce off of 465 that would be very positive. If we fail at that point it would bring the bigger H&S pattern back into play.
All the best…Rambus
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