HMY will be added as a both an Active Long as well as an Active Long-term Trade Idea here around the 5.56 level. As this trade is based primary off the weekly chart and therefore, should be given some room on the stops, my preference will be to begin to take a fractional starter position and continue scaling into (i.e.-buying additional lots) this mining stock over the next several weeks, possibly months.
As stated repeatedly just a few weeks back back when we traded several mining stocks for quick gains based off the 60 minute charts, I suspected that the gold & silver stocks might need one more thrust to a marginal new low, which so far has been the case (so far, as in they have yet to reverse and thereby validate that scenario). I’m seeing quite a few attractive setups on select miners offering objective entries and plan to add some additional trades or setups soon. I do want to add that I can not rule out a final capitulation, high-volume, wash-out move that could be painful to ride out. I also want to reiterate that the mining stocks are an extremely volatile group of stocks & therefore, one should beta-adjust your position size accordingly.
I will follow up with the suggested stops and target for this trade but I will say that I’m currently viewing this as a potential long-term trade, which means that the holding period would be defined in months, not days or weeks and the expected percentage gains in the mid to high double digits+. Stops will most likely be on at least a solid weekly close below the bottom of my support zone (current levels) which could be considerably lower in percentage terms so once again, another reason for the scale-in preference on this trade. Daily & weekly charts below.
