HUI morning update 11:00 AM CDT

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.