HUI - January 4, 2018 - Polar Express Keeps Rolling - Gold Mining Shares Up - Gold and Silver Running

Source Yahoo Finance

The HUI ended higher +1.41 points (+1.41%) with a CLOSE at 198.76. On the daily chart, the fast stochastic is flat with a small positive crossover and remains fully embedded in overbought territory. The slow stochastic is flat with a very minor positive crossover and remains fully embedded in overbought territory. MACD is rising with a positive crossover of a rising Signal line. Divergence is down but remains above the zero mark.

Source Yahoo Finance

GLD ended higher +$0.64 (+0.51%) with a CLOSE at 125.46. On the daily chart, the fast stochastic is flat with a very small positive crossover and fully embedded in overbought territory. The slow stochastic is flat and is fully embedded in overbought territory. MACD is rising with a positive crossover of a rising Signal line. Divergence is down but remains above the zero mark.

Source Yahoo Finance

SLV ended higher +$0.06 (+0.37%) with a CLOSE at 16.23. On the daily chart, the fast stochastic is flat and is fully embedded in overbought territory. The slow stochastic is flat and fully embedded in overbought territory. MACD is rising with a positive crossover of a rising Signal line. Divergence is lower and above the zero mark.

There were no "hits" of any daily target numbers. The Bears tried early to drive the HUI lower and took the HUI to the low of the day at 195.54. The Bulls were having none of it and as the POLAR EXPRESS once again gathered steam, the BULLS drove that train into the HIGH (which was also the CLOSE) of 198.76, the highest close of the move thus far.

The HUI posted an inside bar today, so yesterday's "sell signal" is still in play. For tomorrow, look for the Bears to take out yesterday's LOW (194.34) and drive the HUI back down to 191.14. This particular portion of the move is getting long in the tooth and the HUI needs to reset at some point. For the BULLS, keep the train rolling by taking out yesterday's HIGH (199.04) and drive the HUI to the 201.28 level.

I remain long the HUI. I did not add any positions today, as none of the buy orders were triggered. The plan remains the same, I have a buy order on the previous day's high.

GLD and SLV, unlike the HUI, negated yesterday's "sell signal", by taking out the previous high.

All eyes on the stochastics which are fully embedded. There will be no meaningful pullback until the stochastics fall out of overbought territory. Things are shaping up for a pull back with the falling divergence. Be on watch.

These are just my thoughts and observations, not advice etc.

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As for Friday, good luck and happy hunting.