Back in November 2007, Hecla Mining did not go through a correction as many other silver stocks did. As a result of this, and the fact that Hecla was looking very overbought, we decided to signal to our readers to Take Profits on HL and sold 50% of our shares in the company at an average price of $11.89

The correction in silver stocks presented a two pronged trading opportunity for us and of course our readers as well. On one hand we could add to our holdings and signal BUY on some of our favourite silver stocks such as Silver Standard, Endeavour Silver and even junior explorers such as Eagle Plains. On the other hand, as Hecla had not corrected, their was an opportunity to sell Hecla stock and buy it back at a lower price, which is what we have done.

Hecla has indeed taken a beating and we were tempted to purchase back our shares when Hecla was on its 200 day moving average, but we decided to wait until the stock had bounced or found support on the 200dma before buying back in.

Hecla has now bounced on its 200dma so we are comfortable with marking this stock as a BUY again and re-investing the cash generated from selling this stock at $11.89 and so we bought today at an average price of $9.72. By taking profits at $11.89 on HL, and buying back at $9.72 today, we have avoided the stocks correction and re-purchased at a discount of around 18%.

So if you sold some stock around the time that we did, now may be a good time to buy back into Hecla, and if you have been watching this silver stock for a good opportunity, now is the time to purchase a position in this quality silver mining company. From a technical perspective, we are quite satisfied with buying at these prices. The STO has hit the bottom uf its range and it is now on the way up, as has the Relative Strength Index. On the MACD we have seen a positive bullish crossover as the black line has broken up through the red, which is good news.

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