Because the major indices have broken short-term support levels, we are recommending that our subscribers reduce exposure. In following, we would close out or hedge positions in the likes of Ameriprise Financial (AMP), HP Inc. (HPQ), Johnson & Johnson (JNJ) and NortonLifeLock (NLOK). We will continue to generate new ideas in this forum that have a more defensive tilt, for now.
In following, we are interested in stocks that have caught a bid along with precious metals like Hecla Mining (HL):
HL held long-term support at a Fibonacci retracement level and has now cleared its 50-day (~10-week) moving average (MA) on renewed intermediate-term momentum, evidenced by the MACD “buy” signal on the weekly bar chart below.
Oversold conditions have given way to an upturn in absolute terms, denoted by the weekly stochastic oscillator, and in relative terms, with HL having cleared its 50-day MA versus the S&P 500 Index (SPX).
For an initial resistance, we are consulting the 200-day MA and a Fibonacci retracement level near $6.36. Support near $5.25 (from the daily cloud model) is a suggested stop-loss level.
Hecla Mining Co. (HL, $5.57)
Target: $6.36
Stop Loss: $5.25