Don't give in to emotion

The last few weeks have been quite brutal for holders of gold mining stocks. The HUI index has plummeted 30% since March 1st. However, during such turbulent and agonizing times, it is important to take a step back and look at the big picture. Charts often come in handy when painting a visual of price performance and putting movements like this in context. As quick as stocks like gold mining stocks can be to drop, they can be even quicker to rise. Take a look at the below chart of price performance of the HUI over the last month. Analyze specifically the period from April 23rd till today (May 23rd). What essentially happened in that total price drop over the first 18 trading days was recovered in just 5 trading days. The index is back to where it was on April 23rd, after bottoming out May 16th. It is very important that we do not forget how fast the dynamics can change in our favor if we have the grit to hold on to fundamentally sound positions.

Next gold support line at $1550

Gold vs. USD long term

Gold MUST reverse NOW

A failure to bounce of the 2008 uptrend line would signal a key technical breakdown and possibility of significant further downside.

Natural Gas upside breakout from downward channel

Oil breakout from channel?

HUI Index consolidation followed by breakout/breakdown pattern

Gold mining senior sector has always shown a pattern of consolidations before up moves/breakdowns. Such a move should follow the current consolidation.