The mining shares are moving higher alongside both the broader equity markets this morning and the precious metals. The shares are reacting to what the market perceives as an improvement in the situation regarding the nuclear reactors in Japan.
If enough of the shares can maintain their early gains and do not fade, there is a chance that the HUI could push back into the resistance zone noted on the chart. Clearing this zone would set the index on a path towards 560, which is about midway between the recent peak near 580 and the drop down to 520. That is where the next battle would then be joined.
Failure to clear the resistance zone will see a setback towards 540 initially with additional support below that near 535 followed by 530.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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