TL;DR: Wait for falling wedge on monthly to resolve, look for opportunity to enter a long position on HL to gain exposure to gold mining industry
With the recent uptick in gold prices, attention will obviously shift towards gold miners and other equities involved in the gold space, Hecla Mining (HL) is one such equity.
As you can see from the chart a falling wedge pattern (typically observed as a reversal pattern), has formed on the monthly time frame of HL, whilst i believe that Gold is due for some consolidation after it's recent move, HL may be providing a good opportunity to gain exposure to the market move (i believe) to come.
Historically, HL has held support at, or around $1-$1.50 USD for the past 20 years or so, whilst this is no guarantee! It does speak to the resilience of this stock to fall substantially below this level.
HL also seems to lag the gold price rises, thus giving investors ample opportunity to enter a position, without having to chase the golden bull after it has bolted.
Should HL see a move higher in the coming months, $4.00 USD would be my initial target.
With the recent uptick in gold prices, attention will obviously shift towards gold miners and other equities involved in the gold space, Hecla Mining (HL) is one such equity.
As you can see from the chart a falling wedge pattern (typically observed as a reversal pattern), has formed on the monthly time frame of HL, whilst i believe that Gold is due for some consolidation after it's recent move, HL may be providing a good opportunity to gain exposure to the market move (i believe) to come.
Historically, HL has held support at, or around $1-$1.50 USD for the past 20 years or so, whilst this is no guarantee! It does speak to the resilience of this stock to fall substantially below this level.
HL also seems to lag the gold price rises, thus giving investors ample opportunity to enter a position, without having to chase the golden bull after it has bolted.
Should HL see a move higher in the coming months, $4.00 USD would be my initial target.
Trade active:
HL is currently trading outside the falling wedge, it is not certain that we have broken out of the pattern bullishly, however at press time HL is trading around $2.11/ share, up from $1.78 at the time of publication.
Trade active:
Currently apporaching 100% gain, look to take some profits
Comment:
*approaching
