Ive talked about the price history of HL many times in the past with lofty monthly price targets based on Elliott Wave counts going way way back. The here and now on the matter of intermediate price direction may soon be upon us.
Without going into the wave counts again as they are very broad and speculative, I just want to rehash a few charts here and note a few levels showing themselves of late.
First, the GDX chart posted prior in late October which illustrates the same possibilities the HL charts do for support or further correction. So far the GDX has not taken out this 50-618 Fibonacci zone of resistance shown and the weekly target of 36 is still possible, currently having traded a low of 49.25.
Next, I want to show again the HL monthly chart resistance level noted in early October, as well as the action reaction lines that I believe will be tested before a continued move higher in HL.
Looking at these levels on more current charts below for HL, the weekly high volume area has recently provided support for HL. This would be expected to continue if the correction is over.
At the same time the monthly resistance line was not handled well at the daily time frame only closing above this level twice out of entire month of September. One of those days resulting in a evening doji reversal.
It is my expectation based on the GDX chart as well as the monthly action reaction lines of the HL chart that a longer term pivot low is yet to come IF the weekly high volume zone is tested further in HL.
A daily gap in the HL chart may provide a target for a drift lower towards the monthly action reaction line.