Saturday, February 7, 2009

Trade Update: HL


We are long 25 shares of HL from $9.01 and 75 shares from 2.07.  As you can see in the daily chart HL hit it's 100 dma and that was the kiss of death. Once it gaped back under $2.oo a share you shoulda said so long, right?  If you did you'll likely be mad soon enough. Take a look at the huge, monster huge selling volume that accompanied the drop, that says "damage is done". The sheer volume is unlike anything the stock has experienced in these past 52 weeks and the reality is that the are probably just not any sellers left to sell.

The stochastic flatting out at the bottom is not such a bad sing either.



Check out that gap in the 15 minute chart. I think this stock is safe above $2.00 and that is exactly where the 100 dma is resting. Gaps usually fill and this one is begging to. Once it does it will be on top of the 100 and 200 dmas. Give it a chance. 
 

1 comment:

Dan said...

Hey-- Just nibbled a bit at HL myself. Picked up 1000 @ $1.80.

With the price of silver and gold rising and their debt repayments pushed back, things should be smooth sailing from here on out.

I see you too have been playing SKF. Will be watching that closely this week...