While growth stocks have enjoyed the latest “rally”, some names were already marching higher…
Why is that important?
Relative strength to the broader market.
Our friends at Corporate Finance Institute break it down:
For investors, this should be a key component of their strategy.
And lately, Hecla Mining Company (HL) has been flexing hard…
Take a look for yourself:
I’m charting the daily time frame here because
HL has been a smooth mover since October.
But in this lookback to April, I believe we’re hitting some turbulence…
What’s the next move?
Frankly, no chart can go straight up forever and HL has done that for over three months…
But why turn back now?
I’ve noted a few points on the chart over to the left.
The flag planted on the large green candlestick indicates 1) volatility and 2) a forecasted move lower.
Volatility at a sticking point is already a key driver behind a shift in the trend, but the candlestick shows us exactly where price would need to break below in order for this shift to occur…
I’ve highlighted this area across the chart in blue.
(Notice that this area holds a number of gaps to be filled as well.)
But the current trend has been to ride the 34ema…
And since the Golden Cross marked by the gold arrow, HL hasn’t restested it for support.
If ~$6.10 falls through, $5.92 is next which is at the 34ema.
Falling further, the next stop is the low $5.00’s.
I like it for a long idea to $7.00+.
Keep moving,
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