The Amex Gold Bugs (HUI) Pushes Into Overbought Territory

Today I am attempting my first chart post in this blog. Here is the Amex Gold Bugs (HUI) and the 9-day RSI. The bolded blue bars denote days when the RSI is above 70 (overbought) while the bolded red bars shows days when the RSI is below 30 (oversold). I like this chart set-up before because like how it highlights the nature of the indicator in relation a specific security.

One of the things I have noticed about gold stocks is that they seem to "oscillate" more than trend. I wanted to point this out because it shows the recent historical activity. I stress historical because that doesn't mean it is what will happen. But understanding the recent behavior can give clues to what might be expected to happen. It also gives you a way to gauge when the situation may be changing. For example, a push into overbought territory that stays "overbought" may signal that more underlying strength exists now than what has been the case...