Stock Technical Analysis: Buy Hecla Mining (HL) on Pullback to Support
Written by Lawrence on September 20, 2009
Here’s our take on Hecla Mining (HL) as per request! 
Gold and gold mining stocks have been on a tear in the past few weeks. Not surprising, HL has rocketed upwards together with its mining counterparts since early September, and hit a high of $5 on Wed (Sep 16). However, in the past two days, HL retraced sharply below $4.50, registering a dramatic change in its bullish character. How should one trade HL going forward?
Stock technical analysis of HL shows immediate resistance at whole number $5, with support at about the $3.80 level. It seems that HL lies in the mid-point between the two critical levels and presents an unfavorable condition for either a short or long entry.
One trading approach would be to buy the stock if it retraces to support at $3.80, and bounces off this level. It is interesting to note that the 20-day moving average is rising sharply and likely to coincide with the $3.80 level in the next few days.
It is also possible that HL consolidates at the current price for the next few days and then move aggressively above the $5 resistance. That would be a sign of a very strong market. In this case, one can buy HL immediately upon breaching the $5 level.
Stock Technical Analysis of HL
However, a definite drop of the stock price below $3.80 will trigger a sell signal, in which case, traders are better off waiting on the sidelines to see how far the stock drops before taking a position.
Go hit them!
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