Friday, May 20, 2011

Trade Update: HL

You can see the strong support that Hecla Mining HL is getting at the $8 zone. The shares broke up above $8 all the way back in November of last year and have tested it three time since then and are testing it now. Notice the huge triangle formed since December, the $8 line forms the base and the hypotenuse goes roughly from yesterday's closing price of $8.05 and up to the 52 week high of $11.56 back in early January. This is a consolidation pattern that is closing up, the price cannot stay in the triangle forever.

What we have to wait for now is a break, either down in which case we will be stopped out of our 50 shares, or up above the downtrend line formed by the hypotenuse of the triangle, in which we will double our 50 shares to complete our position.

We have had a nice history with HL and want to stay with it. Previously we entered at $2.07 and sold at $8.42. This time we took a half position at $8.54 and are now waiting for the break one way or the other.

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