Stock Chart Analysis HL

Posted by downtowntrader | 11/03/2009 10:25:00 PM View Comments

Stock Chart Analysis HL
Hecla Mining Company (Public, NYSE:HL)

I wrote an article last week for Investopedia mentioning that there might of been a buying opportunity present in Silver and in it I mentioned Hecla Mining Company (NYSE:HL) as a silver miner to watch, as it was close to testing an important support level. The support level mentioned was the $4 level, which was a prior high back in June. Notice how HL has been trading in clear horizontal channels over the past several months. It broke out of a base in April and came back to test it a couple of times in May and June. It held this level, and never looked back. It rallied in September to new highs, and has now come back to test the breakout area near $4 twice. It appears to have held that level, and HL had a very sharp move higher today after reporting earnings. Volume was up sharply, and there was also a sharp move higher in the iShares Silver Trust (ETF) (Public, NYSE:SLV) today as well, which could lead to new highs in Silver. It looks like the recent correction in Silver is ending and this could mean higher prices for the miners. I had started to pickup some SLV shares after writing that article, and picked up HL this morning as well. Even if Silver is not ready to go, at least there is a clear area under the recent test of support for which to place my stops.

Good Trading,


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