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HL First Price Target Hit for a 6.5% Profit

HL (Helca Mining Co.) just hit the first target, 6.32, for a quick 6.5% profit. T3 at 4.87 remains the final target at this time although those that were only targeting a quick pullback trade to T1 should consider booking partial or full profits and/or lowering stops to protect profits.

HL daily Aug 23rd

HL daily Aug 23rd

My (partial) reply to a question today about adding to an existing short position on HL:

I think it would be best to add in one of two instances: Either a bounce back up to around the 6.60 area (slightly below yesterday’s & today’s highs) –OR– on a break below 6.30, which is the actual support level that horizontal line on my daily chart is positioned at. Keep in mind that I set the price targets for short trades slightly above support to help avoid missing a fill, should the buyers step in (or short-sellers cover) just before the actual support level is it.

As such, I set the first price target on HL at 6.32, a bit tighter to the actually support level than usual & so far, HL hit a low of 6.34 yesterday & 6.32 (first target now hit) just a few minutes ago. With a decent chance of a reaction (bounce) off this initial tag of the first price target, it would be prudent to either wait for a bounce to add to the HL short OR a solid break (by more than a penny or two) below the 6.30 support level.

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Aug 23, 2016 12:49pm|Categories: Completed Trades - Short, Gold & Commodities|Tags: |2 Comments

2 Comments

  1. j1persi August 24, 2016 9:32 am at 9:32 am

    So safe to as here on HL breaking well under 6.30?

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    • rsotc August 29, 2016 1:51 pm at 1:51 pm

      j1persi – Looking over the comments from last week I just saw this one from you regarding the break below 6.30 on HL. Yes, that was the catalyst that I was looking for to spark the next leg down to the 2nd price target, which as hit later that same day.

      HL has been consolidating around the T2 level since then in what appears to be a bear flag continuation pattern (best viewed on the 60-minute time frame). As such, a solid/impulsive break below the flag pattern is likely to be the catalyst for the next leg down to the final target, T3 at 4.87, especially if confirmed by a similar move down in GDX.

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