"Don’t let it be forgot, that once there was a spot, for one brief shining moment, that was known as Camelot,"
Know your history before you name your company! This, by the way, is a “zig-zag” correction so if you are a bull a new bull market could be born at the next new low, if you are a bear the stock may briefly drop below the zero line. That is normally not that brief!
The stock followed the script more or less as expected, losing roughly 20% only to rebound quite rapidly, proving that not only the precious metals but also most anything else is sensitive to Fed easing. This chart is a replica of the one below. Not sure what it means but pretty certain that the next major move is to new lows (see previous blog).
See also previous 2 blogs. First recommended at $27.70. We are now approaching the target of $36 as expected in the previous update and are up about 30%. We would sell now. The $36 target represents a retracement of about 60+% of the $20 drop, and also coincides with the top chanel parallel line. We have no idea what to make of these ups and downs but given that the RSI is, and has been for some time, overbought the next big move could well be down.
Hecla is one such silver stock that we have previously mentioned. Back in January we even suggested this was a good, but risky, buy at about $4 for a target of about $7, potentially a 75% gain. Below is what has transpired so far;
HL has a tendency to do very nice wedges and then reverse. Here the wedge is quite visible even if it is debatable in strict EW terms if it actually is one. The a-b-c rise from the lows is plain vanilla text-book stuff. It looks more or less complete with the a-b-c structure having traced out a pretty symmetric pattern with c equal to a. Of course this could still become more complex but, in the event you did buy on the recommendation we would sell now and take the roughly 50% profit. Notice that the RSI is already well into overbought territory.