At this moment, we see a very interesting technical pattern forming on this graph. An inverse shoulder-head-shoulder pattern should be cleared on the right. This is a very bullish sign which perfectly corresponds with our previously outlined theory.
To be more concrete, when this formation has been completed, which could take up some more months, the path is ready to continue to 600 points and even higher. Consider that today the HUI-index moves around the 200 points!
And never forget: if this sector is on fire, nothing will keep it from stopping. We saw this already happen in the 2008 to 2011 period when the HUI-index jumped from 175 to 625 points (+257%).
Gold and silver mining shares went through the roof, but the JUNIOR shares in this sector went through the sky. Some of them jumped with multiple thousand percent’s!