| Chart Patterns of HUI NIKK USD |
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| Friday, January 6, 2006 |
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Weekend Update - HUI, NIKK, & USD
The Gold Bugs Index - Amex (HUI)
The daily chart of the HUI shows that it has broken out of an ascending symmetrical triangle and has rallied sharply ever since. On the weekly the HUI is breaking out of a slim jim pattern and is doing what it is supposed. It is very strong. As you can see, the Aroon is in a bullish trend. The PPO continues to make new highs along with price as is the RSI. Finally, the stochastics are bull flagging. Stick with the leaders and the front runners, such as NEM, GG, ABX, and GLG, you will be fine. There are no hints that a correction is about to start. Dump your precious metal laggards now and get into large caps. Again, the trend is bullish and the PPO continues to make new highs along with multi year/decade highs in price.
The Tokyo Nikkei Average (NIKK)- Monthly Chart
As you can see, the NIKK has been in a strong uptrend for months. This month, the NIKK is up 21.97% at 16428.21. The NIKK is breaking out of it's downtrend channel. If you want to play the NIKK I would buy a backtest to the down trend line and then watch it swiftly go on to make new 52 week highs. Indicators and oscillators are bullish. If you want to play the NIKK, I would recommend that you look at the Japan i shares ETF, the EWJ.
The US Dollar (USD)- Weekly Chart
The dollar is bearish and it really needs to be tanking. It back kissed the uptrend line and I believe that it may be forming a possible bear flag. I believe it will form an inverted head and shoulders pattern once it hits the 82's on the weekly chart. After that low has been put in, I believe the dollar will rally for another 18 months or so into the 105 area.
$HUI
$NIKK
$USD
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