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HYMC rebounds, melts in place?

  • HYMC stock soared on Wednesday as traders cited a $20 price target on the Twitter account.
  • HYMC stock gives up gains on Thursday and Monday as it retraces to $1.80 support.
  • HYMC is well followed by AMC monkeys after AMC investment.

Update: The Wall Street crash, courtesy of Fed Chairman Jerome Powell’s hawkish back-up, has exacerbated the pain in Hycroft Mining stock. HYMC hit new monthly lows at $1.5100 before making a modest comeback to settle up 1.95% at $1.5700 on Thursday. This week’s downward spiral helped stocks revise last month’s rally, triggered after AMC announced an investment in the company. Looking ahead, it remains to be seen whether Thursday’s rebound could provide a near-term bottom for HYMC’s stock price.

Hycroft Mining (HYMC) stock soared late last week as retail traders pounced on the potential $20 price target placed on the stock by a Twitter trading account (and not by a Wall Street analyst, it should be emphasized). It’s a feature of retail stocks with Twitter accounts that often get more traction than Wall Street analysts. Traders began running a tweet from Trade Ideas LLC last week. The account suggested that HYMC stock “could EASILY be at $20.”

HYMC Stock News

$20 is a pretty big price target considering where the stock is currently trading – at $1.82. HYMC stock has already made its way towards the $20 mark but that was in August 2020. Since then HYMC has gone through several changes and as recently as November last year was in real danger of making bankruptcy as the company gave in to huge layoffs as it sought capital to survive. That capital finally materialized this year in the form of an investment from AMC.

The investment came a little out of left field for the movie company, but certainly generated notable copy for AMC CEO Adam Aron and his gang of AMC monkeys. They responded well to left field diversification and HYMC managed to raise $138.6 million in a capital raise. This came after AMC rushed to take a 22% stake in HYMC. AMC jumped as much as 70% in the week after the announcement of the investment in HYMC. HYMC stock climbed as high as $3.10 before the inevitable profit taking set in, with HYMC pulling back to its current level of $1.80. The aforementioned tweet from April 13 saw it briefly return above $2, but that proved to be short-lived.

HYMC Stock Forecast

We can see why the area around $2 has held as support. It is not only a round number, towards which the market is always attracted (human nature), but also a key Fibonacci retracement level. HYMC stock now appears to be breaking out of this support zone, which will bring a target of $1.40 into view. This is the 61.8% retracement of the recent spike move after AMC’s investment.

HYMC stock chart, daily

Previous updates

Update: Hycroft Mining stock ended the day under pressure, caught up in the unease left behind by Federal Reserve Chairman Jerome Powell. Fed chairman told International Monetary Fund panel that restoring price stability was ‘essential’ and a 50 basis point rate hike was ‘on the table’ at Committee meeting Federal Open Market in May. This forced Wall Street to its knees.

Meanwhile, from a technical perspective, the price is encountering the 20-day smoothed moving average which could serve as support given the bullish structure of the M formation on the daily chart. The M formation is a reversion pattern where price, following the daily doji, is expected to retrace back to test former closing lows in an average 50% reversal. This stands at close to c$1.88 or the low of the wick near the 38.2% ratio around c$1.79.

Update: Hycroft Mining stock jumped as high as $1.70 at the open on Thursday. Since then, it has declined somewhat to $1.59, a gain of 3.2%. HYMC stock has lost ground in the previous four sessions, so if it can sustain a gain this session, a reversal could be afoot. The 9-day moving average, however, remained below the 21-day average, an action that has long seemed likely. The move is obviously bearish. Where they crossed, $1.96, is the next upside target for the bulls. HYMC will need to find the 21-day moving average to prove a change in trend. Until then, HYMC remains in a downtrend.