Monday, March 14, 2011
Trade Update: HL
We first entered Hecla Mining HL in October 2008 at $2.09 and sold it at $8.42. So, I find it very interesting that today the shares closed right back in the same zone at $8.57. And there is more.
First take a look at the huge double top being formed from about $8.50 to $11.50 from
mid November last year till today. This massive double top is just on the verge of forming. It's like watching a category five hurricane cranking up. So, why go long here? Because that break zone between $8.0 and $8.50 provides formidable support. Also the stochastics on the bottom are crossing over and turning. They could not be better positioned under any circumstances. Finally with the selling volume tapering off since the final week of February something just said buy me.
I put the stop a few cents under the 200 dma for now. I will probably adjust it up some tomorrow.
Will HL rocket up to $50 per share? I don't know, all I know is that if it breaks down we will be out with a very small loss.