HUI - deeply oversold and nearing support

The mining shares have been absolutely obliterated over the course of the last couple of months as their longsuffering owners can all too sadly attest.

The carnage however has dropped the index deeply into oversold territory on the weekly price chart. If you notice the chart carefully, this particular indicator which I have tweaked a bit to optimize it to the index, is now nearing levels seen only TWICE since the entire bull market began. Not only that, it is also nearing an important Fibonacci retracement level of the rally that began off the 2008 low before peaking last fall.

Between the extreme undervaluation against the price of bullion and the broader S&P 500, we should be nearing a turning point on this sector within the not too distant future. They have not yet flashed a buy signal but are getting close.