Similar to the HMY long trade idea posted below, HL is also offering an objective long entry around current levels based on both the weekly and daily time frames. As with HMY, HL has fallen to key multi-year support while at rarely seen oversold levels that have historically accompanied or preceded lasting bottoms in the stock. As with HMY, this has the potential to be a long-term trade and I plan to follow-up with the suggested target(s) and stop level(s) asap. As with any other mining stocks, my plan is to only start with a fractional position with the intent of continuing to add to the trade over the upcoming weeks as long as the charts remain constructive and my stop(s) has not been exceeded.
For reference, I have included the chart on the previous long trade on HL just before it broke out and shot up well over 40% where it stopped and reversed at the original final target (although I decided to book full profits once the third target to protect the gains). That goes to show that the gains in this sector come quick and plentiful at times but that can, and often does, cut both ways. Make sure to only take trades that fit your specific trading style and risk tolerance and do not become complacent with your stops. Charts in order as follows: Daily chart from the previous trade, just before HL triggered an entry, then the updated (today’s) daily chart, followed by the updated weekly chart.
