Hycroft Mining Stock News and Forecast: HYMC rebounds, bottom in place?

Update: The meltdown in Wall Street, courtesy of Fed Chair Jerome Powell’s hawkish reinforcement, exacerbated the pain in Hycroft Mining stock. HYMC hit fresh monthly lows at $1.5100 before staging a modest comeback to settle Thursday up 1.95% at $1.5700. This week’s downward spiral has helped the stocks to revise last month’s upsurge, triggered after AMC announced an investment in the company. Going forward, it remains to be seen if Thursday’s rebound could provide a near-term bottom for the HYMC stock price.

Hycroft Mining (HYMC) stock spiked late last week as retail traders jumped on the potential price target of $20 placed on the stock by a Twitter trading account (not by a Wall Street analyst, it should be pointed out). This is a feature of retail stocks with Twitter accounts often getting more traction than Wall Street analysts. Traders began circulating a tweet by Trade Ideas LLC last week. The account suggested HYMC stock "could EASILY be at $20".

HYMC Stock News

$20 is a pretty big price target considering where the stock currently trades – at $1.82. HYMC stock has previously made its way toward the $20 mark, but that was back in August 2020. Since then HYMC has gone through several changes and as recently as November of last year was in real danger of going bankrupt as the company gave in to massive layoffs as it looked for capital to survive. That capital did eventually materialize this year in the shape of an investment from AMC.

The investment came a little out of left field for the cinema company but certainly generated notable copy for AMC CEO Adam Aron and his band of AMC apes. They reacted well to the left field diversification, and HYMC managed to raise $138.6 million in an equity raise. This came after AMC had stumped up to take a 22% stake in HYMC. AMC jumped as high as 70% in the week after the HYMC investment was announced. HYMC stock rallied up to $3.10 before the inevitable profit-taking set in with HYMC retreating all the way back to its current level of $1.80. The above mentioned tweet on April 13 saw it briefly get back above $2, but this proved short lived. 

HYMC Stock Forecast

We can see why the zone around $2 has been holding as support. It is not only a round number, which the market is always drawn to (human nature), but also a key Fibonacci retracement level. HYMC stock now looks to be breaking out of this support zone, and that will bring a target of $1.40 into view. That 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 malaise left behind by the Federal Reserve Chairman Jerome Powell.  The fed chair told an International Monetary Fund panel that restoring price stability is "essential" and that a 50-basis point rate hike was "on the table" at the May Federal Open Market Committee meeting. This forced Wall Street onto its knees. 

Meanwhile from a technical perspective, the price is meeting the 20-day smoothed moving average that could act as support considering the bullish structure of the M-formation on the daily chart. The M-formation is a reversion pattern where the price, following the daily doji, would be expected to revert back to test the old closing lows in a 50% mean reversion. This comes in near $1.88c or the wick lows near the 38.2% ratio around $1.79c.

Update: Hycroft Mining stock jumped as high as $1.70 on the open on Thursday. Since then its has reduced somewhat to $1.59, a gain of 3.2%. HYMC stock has lost ground in the previous four sessions, so if it can hold onto a gain this session then a turnaround may be in the works. The 9-day moving average still moved below the 21-day average, however, an action that has long looked likely. The move is obviously bearish. Where they crossed, $1.96, is the next upside target for bulls. HYMC will need to regain the 21-day moving average to prove a change in trend. Until then, HYMC remains in a downtrend.