Loading ...HL Monthly: Monster H&S Formation
Hecla appears to be constructing a monstrous, irregular-shaped, bullish H&S pattern, almost 30 years in the making. Present “neckline” breakout level looks to be about $10.00. Still quite a ways higher from the current price but its definitely worth keeping an eye on, as the implications upon an upside breakout, percentage-wise, are staggering…
Nature loves symmetry, so I have projected an upside breakout in 2017, to make it a perfect 30-year pattern…
To me it looks more like a failed IHS pattern that failed in 2008—it looks more like a company that has been making lower highs for 28 years with the first touch of the downtrend resistance line in 1988 and HL hasn’t been able to break above that downtrend resistance line in 28 years–
Tx for the comments Carolynsue – although I disagree. The rally to the neckline from $0.49 to $11.39 in 2008 completed formation of the “head”. That was a rally of +2324% btw. the first right shoulder completed in 2011, and HL is now working on the second right shoulder…so no “failure” unless HL breaks below this year’s lows which i highly doubt will happen.
also – the fact is HL has not been making lower lows for 28 years, as the lows in 2009 and 2016 have been progressively higher.
of course – you’re right about HL being below trendline resistance for over 28 years, but then – so has silver, going on 36 years – so i have a pretty good feeling about both! 🙂