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« Silver: A Look Ahead | Main | Silver and the 200-Day Moving Average. »
Monday
Apr142008

Hecla Mining Company: Take Profits

We are hereby signalling to Take Profits on Hecla Mining and we sold 50% of our holdings today at an average price of $11.79.

Hecla Mining Company: Take Profits

Our selling of Hecla has been mainly motivated by technical factors. We do not really see Hecla trading higher than its recent highs of around $12.50 in the short term, as it would take a substantial rise in silver prices to push HL through that resistance level and this is a seasonally weak period for precious metals. This is also the second time that Hecla has challenged this resistance so we could be witnessing a double top formation, a very negative signal.

We have taken profits at these price levels before, back in 2007 when we sold 50% of our holdings for an average price of $11.89, locking in profits of 50% and 125% from our past purchase at $7.93 and $5.27. A correction followed and we bought the stock back and signalled a BUY again at $9.27, getting an 18% discount on our shares. This chart below maps the history of our signals on Hecla Mining.

Hecla Mining Company: Trading History

We still believe in the long term silver bull market and the great fundamentals of this silver company. However in the short term we are locking in some profits and we intend to buy the stock back at a later date and, hopefully, a lower price.

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Reader Comments (2)

Hey , I agree again, (FOR TRADERS!)but get ready to get ridicule, because every time you recommend a sell point on one of our 'darlings' , you get gruff for it :) I also look at the MACD when a stock returns to a former high-and the macd reading is much lower than mid march when it was at these highs last time.IT also looks like a lighter volume test to the top(weaker, less buyers)...so I also was ready to sell. AND READY to re buy later-to all the gold/silver bugs who simply ride this bull and hate to hear sell recommendations.But for me, thanks 'silver~prices.net' for the alert!!

April 15, 2008 | Unregistered CommenterRobert

Robert, Thanks for your kind words they are much appreciated.

Most writers will tell you to take some profits on the way up, which is good advice, otherwise you will go all the way up and all the way down again. However, to 'take profits' is a motherhood statement and does not tell you when, why or how much etc. So rather than be vague about it we publish every trade we make and we publish our portfolio so the readers can see where we are, what mistakes we have made etc. We will live with adverse comments.

April 15, 2008 | Unregistered CommenterSilver Prices

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