Skip to main content

I remember couple weeks back, gold and silver were rallied hard, one of the silver stock I like is HL. I am going to choose it for today's case study.  When I look at the weekly chart, it is quite interesting to see a 21 weeks rally along with Elliot Wave formation.  Please refer to the chart below, it is interesting to see the 5 waves formation hidden in the trend chart, however the daily chart is to short to show such a large time frame rally.  Analogy: It's like the globe always in front of you but you need to fly up to the space to see the whole picture.  Back to the EW analysis, if the above assumption is correct, what we are at as of this writing is the wave A correction (1st down wave after a complete rally), using Fibonacci ratio we need at least 21 weeks * 0.382 = 8 weeks to complete the whole correction which is 4 weeks away (another 2nd wave correction, wave C) before another bull market again.

 

Weekly Chart of Hecla Mining Company (HL)

 

Let's look at today's daily chart, even it shows some good signs (consecutive) whole green bars, it is just the weekly chart not confirming the rally and the stock is still restricted by the correction wave A.  It is interesting to see EW hidden in the trend chart and here conclude today's case study.

 

 

(HL) trend chart.