I’ll preface this by reaffirming that I for one have no clue if the sector correction is ending or if this is still a bounce only. Since the sector’s technicals have generally not eliminated the ‘bounce only’ theme that is the theme I am staying with.
But when we get a day like today, a hint toward further cooling of the spring’s inflation hysteria, I re-take fundamental interest in the miners. Hence, while still very light I picked up HL on the prospect of a bounce per the highlighted pattern and the attractive RSI.
Of course, if it were to bounce much further (resistance is 6.45) it could start undoing its bearish loss of the major daily chart uptrend (SMA 200). For mental health, I am just taking it as a position for a would-be continued bounce in the oversold sector that I expect to be a primary sector whenever the macro does turn toward disinflation again.
I’ll probably have a tolerance around yesterday’s low and on the upside, look for a takeout of 6.56 to start feeling really good about the prospects.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.
