Loading ...Hecla’s 200 week Bollinger bands…
The 200 week Bollinger bands for HL haven’t been this narrow in at least 25 years, as you can see in the below chart.
There is going to be a volatility event that plays out (imminently IMO), and my guess is HL is going to explode to the upside in a manner that sees the 200 week Bollinger bands widen massively.
When you look at HL vs just about anything else (e.g., gold, yen, silver etc.) you see a similar picture.
Also, note that the weekly full stochastics have a lot of room to run before they become overbought technically, so full steam ahead for now.
Thanks, Nautilus
A market crash will send gold stocks into the gutter though. Could that be what the Bollingers are signalling? Gold stocks are not known to be good performers during crash events.
That is a fair point.
My prediction of an upward move (rather than downwards) is based on other factors most importantly gold and silver’s technical pictures, which are far more bullishly advanced at this juncture.
Also, the 200 wma on the HL:silver ratio chart positively crossed the 600 wma last year. Not even the move off of the 2000 low was able to do that (although they got very close to positively crossing). In short, the HL:silver ratio is bullishly set up for a large multi year run with the 200 wma now firmly above the 600 Wma.
A major liquidity event could absolutely send this scenario into the gutter. But do you honestly see something like this with this Fed? They will print instantly on any signs of illiquidity.
Investing is always speculative.