HL is currently above the key weekly Ichimoku cloud resistance that I identified a few weeks ago and is actually trying to take advantage of the window of opportunity this week presented.  The move off of the February low has already been massive, so it is going to take something extra special to keep HL moving higher in the next month or two.

I don’t want to jinx HL with this post, but it is important that HL close above that key $5.25 resistance level, as defined by the cloud, this week and next.  If it can do that, I expect the next target will be the upper 50 week bollinger band that you can see in the chart (currently at $6).  I am expecting a few weeks of correction or consolidation once it hits that level to let the 5 week moving average catch up to price.  The good thing is that once we are past this week and next, the cloud will act as support instead of ominous overhead resistance.

Ultimately, I think HL is bound for the  200 week upper bollinger band, currently at $7.40, in the next couple of months, although the timing on that is less certain.  For me, as long at spends its time above the 200 week MA and that $5.25 level instead of below it, the technical view is constructive, even if a break above $7 could come closer to the end of the year.