Hecla Mining Company (NYSE:HL)Q: Hello Chip,
Thank you very much, from Holland.A:We issued a Downtrend on HL back on June 17th @ $2.62. Our system isn’t necessary negative on the fundamentals as it is a technically oriented program. Based on several proprietary algorithms, when it detects bearish price action and predicts lower prices, it will issue a Downtrend alert and that downtrend can last anywhere from a few days to a few months, with the average being about a month. Specifically to HL, our downtrend came right when it broke under the 200-day moving average which was an important support line. It tried to rally after but has since re-tested the average and has no fallen back below. The next area of support is the $2 level where it was pretty much all of April. Once t can find a support level, then it has a chance to rally if some of the fundamental reasons you cited about silver prices pan out.