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.
The target calculated some time ago was $5.30, so far the high was $5.23. Coming from $3.79 that is a good enough gain. Sell. This applies by extension to a number of other junior silver miners such as PAA as well.
See also previous blogs. We got to $7.72 right at the end of August. Timing seems to fit nicely but the low was a little shy of the “ideal” Fibo $7.08 but still close to a number of other targets. With a little imagination a 5 wave sequence can be counted so our guess is that the rally has started. Remember this stock comes from $29 so it went down at least $21. A normal, minimal retracement would be about 1/3 or $7.