This appears to be at least a temporary bottom as the index has fallen 40% from its August highs so quickly that a relief rally seems inevitable. The next formidable challenge in the short term is for the HUI to close above 180, the nearest level of resistance. From there, the next level of resistance will be somewhere close to 200.
What jumped out at me when looking at this chart is the potential for a massive head-and-shoulders topping formation going all the way back to 2007. You can read more about this particular pattern on Investopedia, but suffice it to say it's very bearish. The left shoulder and the head are very clearly defined as I attempt to show above with the arcing green lines. The recent bounce off of 150 is forming a perfect neckline and setting the stage for the next leg higher - potentially to form the right shoulder.
If you're bullish on the HUI, this is good news and bad news. The good news is that if my head-and-shoulders thesis plays out, we should see at least a double from current levels, if not quite a bit more. Right shoulders typically peak below the left shoulder, so given that the left shoulder peaked around 520, the HUI has ton of room to run from current levels. The bad news, obviously, is that this pattern suggests the HUI won't make new all-time highs any time soon. After the right shoulder takes shape, we should see a renewed plunge back to the neckline. Then, if price breaks below the neckline, look out. Given the size and magnitude of this topping formation, I would expect to see the HUI fall all the way back to its 2001 lows (yikes!).
Keep in mind two things. First, this is a monthly chart so it takes a long time for things to play out. Day-to-day gyrations have little effect on the big picture. Even if I'm spot on with my head-and-shoulders observation, it will likely take several years to play out. Second, the head-and-shoulders pattern may not even play out. We have a left shoulder. We have a head. We have a neckline. But we don't yet have a right shoulder. Until we do, this may be nothing more than coincidence. That being said, the crispness of what I'm seeing suggests that it's something to keep in the back of your head as time goes on. There are a lot of PM bulls out there calling for new all-time highs for gold which would take the HUI right along with it. This formation on the HUI does not look like a long-term bottoming pattern but rather a long-term topping pattern. Time will tell...