Clive Maund
gold, silver, & oil shares
HECLA MINING...
originally published March 24th, 2009Hecla is rated a buy soon, for very similar reasons to Coeur d'Alene , which was written up on the site last night, the chief difference being that Coeur has a probable reverse split coming up.
On the 1-year chart we can see that Hecla appears to be in the late stages of a Double Bottom pattern with the price having been in a trading range bounded by about $1 and $3 since late October. Although Coeur's base is classified as a Pan & Handle, comparing the charts we can see that there are strong similarities between the base patterns. Last week Hecla rose sharply across the trading range on strong volume, a positive sign, and although now short-term overbought and thus prone to react, any such reaction is likely to be short-lived and followed immediately be a resumption of the rise which should take the price further through the resistance shown towards the $3 level, where we will have to review the situation to assess the chances of its breaking out immediately from the base area, a development that will mark the start of a new bullmarket in this stock.
Hecla is very overbought short-term on its RSI indicator (not shown), suggesting an immediate reaction today/tomorrow. This reaction can be used to pick up the stock at a slightly better price for a continuation of the move that started last week to towards $3. Hecla, like Coeur, is viewed as a "buy and hold" situation.
Hecla website
Hecla Mining Company HL, closed at $2.15 on 23rd March 09.
Posted at 8.40 am EDT on 24th March 09.
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