HUI was finally higher as that index, looked oversold, it tested the 200dma yesterday and couldn't break the early selling today. They are a decent amount of buyers who are willing to buy the shares down near these levels as from a money management perspective, they have a rather small and well defined downside risk should the trade go south (using the 200dma)
One day does not mean we are in rally mode we'll have to see how the rest of the week pans out, no pun intended.
I'm modestly optimistic by today's action, the technical indicators were so deeply oversold on the HUI that any signs of stability will turn them to issuing buy signals rather quickly. If nothing else, it will force the bears who have made some pretty good profits on the way down to snatch them before they disappear.
The HUI will need to get above 516 – 517 or so to give us some signs that the low of yesterday is the bottom in this latest reaction. If it can hold 490 its a very very good sign.
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