The massive, almost perfect head & shoulder formation in the Gold Bugs Index (HUI) is now near completion. This means that any day now the resistance line could be breached on the upside. A breakout will likely result in a very large rally — lets see how this unfolds (see chart below):
King World News note: A major rally in the HUI Index would also trigger a breakout in the price of gold above the $1,325 to $1,340 resistance level, and would also send the price of silver surging above the key resistance at $22. This would also be textbook action for a bull market in that the shares would be leading the metals higher.
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