Dallas, Texas 04/22/2014 (FINANCIALSTRENDS) – Hecla Mining Company (NYSE:HL) has been trading in a very narrow range with a strong downward bias in the last couple of days. The stock is currently trading below its 50 day moving average and 200 day moving averages which stand at $3.31 and $3.18 respectively.
The weekly charts suggest the stock has been on a downward bias for the month and lost a substantial amount. The momentum indicators on the daily charts show a weak trend for the stock and are in the negative zone, this is a bearish sign with a weak upward momentum, the relative strength index for the stock saw a downturn from the no trade zone towards the oversold region, this is again a bearish sign, this implies the stock has weak support levels and is on a downward bias.
Daily chart for Hecla Mining Company (NYSE:HL) suggests a triangle formation, this indicates the stock has no particular momentum on the either side, the stock can see an upward trend the stock sees a breakout on the upward side, a breakdown on the downside will mean the stock will see further correction in the upcoming trading sessions. The stock has in yesterdays’ session given us a confirmation of the triangle breakdown and we believe that the stock can head lower. This breakdown gives us a target of a minimum of $2.63 on the downside. Any bounce back after yesterdays’ sell off will see the stock find very good resistance at the upward sloping trend line (base of the triangle) at $3.07
(Figure): Daily chart for Hecla Mining Company (NYSE:HL)
Hecla Mining Company announced increase in its production and efficiency, on April 16, 2014 the company came out with reports suggesting silver production rose to 699,600 ounces from the previous year’s first quarter of 120,000. Zacks’ upgraded the rating on the company to a strong hold yesterday which was received well by the street and saw the stock recover in intraday trade.