Financial markets around the world remain firmly in the claws of the bears. Also the Precious Metals cannot escape from it. While in the summer a respectable recovery succeeded, mid-August gold, platinum and silver started to drop again together with the stock markets.
Starting from a new 20-month low at 17.55$ on September 1, however, the silver is currently showing surprising strong relative strength. Thus, the price of a troy ounce of silver is currently trading at 19.60$, slightly below the round 20$ magnet, but nevertheless we are able to recognize a +11% since the beginning of September!
And also some of the pure plays in the Silver Sector start to show some positive divergences.
Just look at the Hecla Mining Company (HL) stock as an example ...
Hecla Mining lost its 200-day MA (moving average) back in April. No trending move will be able to gain any traction until HL is able to close back above the decling 200-day MA main resistance, respective in the nearer future prints a substancial close on weekly base above the round 5$ W.D. Gann Resistance Number.
For now and next however, a run up to the 5$ main resistance seems to be sealed with quite high certainty. See for yourself:
Last week Friday the shares were able to close above the nearest former daily main resistance rail & the 50-day MA. This was a first stronger long signal, which seems to have been successfully retested at the end of this trading week, as HL shares were able to close once again above the red-dotted former daily main resistance on a weekly closing basis and the Friday low has successfully retested the increasing dark-green dotted daily support for the seventh time.
With the currently running daily MACD-long signal it was activated that the 200-day MA upmagnet target might be re-tested again within underway daily uptrend. That 200-day MA should acts as strong main resistance rail for the rest of 2022.
==> 200-day MA should be the shortterm uptarget for HL. This important upmagnet for the near-term runs at round 5$ W.D. Gann number upmagnet surroundings.
I would like to mention that the final lows of this year may have been made at the lows of July, as the downtrend cycle that began at the # 1 // absolute high of this year bottomed near the often very important trend reversal Fib-number 89.
Next, I want to present and analyze this daily 22 (22-1=21-Fib number) Candle GUNNER24 Up Setup which seems to be perfect with regard to a turn of time. It starts measuring the uptrend cycles, swing and waves at reached # 1 // 3.44$ // 2022 Low:
The last week Friday closing auction cleared former daily Blue Arc countertrend high main resistance on combined daily & weekly closing base, immediately followed by significant close above 1*2 Angle.
That`s 2 official daily GUNNER24 Buy Signals in a row. By this the activated daily uptarget is the near-term work off and test of the 1st double arc in current trend direction. The activated daily uptarget of the 1st double arc might be worked off at the round 5$ as the 200-day MA and 5$ number magnet form bigger resistance upmagnet at that 5$ around late-September to early-October 2022.
On Friday, at the low and at the final low of the week, the natural dark-green upwards Main Support Angle held for the 3rd time to the most exact and was thus cemented as the most important support rail of this recovery cycle.
And IMHO, the late rally into bullish Friday close, allows that that the Main Support Angle together with the natural support of the round 4$ number develops so much short-term positive energy that HL shares will process their 5$ countertrend uptarget quite quickly til early-October or so!
==> A HL-long entry on Monday below daily 4$ support number should be a pretty good trade idea!
Last but not least, it is very noticeable that also the weekly chart indicates and allows that HL shares soon have to work off the round 5$ magnet:
Watch this! How beautifully accurate the 40-week MA main resistance has been working for a year now!
Since this confirmed chart technical main resistance/declining annual resistance rail will stay right at the round 5$ number magnet for the next few candles, the round 5$ should be a future important combined daily & weekly upside target and major backtest target!
==> HL stock shows a combined daily & weekly & Gann number shortterm uptarget magnet at 5.00$.
Be prepared!
Eduard Altmann