Hochschild Mining and a secret up its chart
With its chart looking good, independent analyst Alistair Strang believes this gold miner's shares may be worth taking a hard look at.
25th March 2025 07:34
by Alistair Strang from Trends and Targets
A component of the FTSE 250, Hochschild Mining (LSE:HOC) recently produced what was described as their best results in 13 years. Better still, they restored their dividend, something which we like to see as it generally will imply longer-term confidence in an organisation.
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Of course, the price of gold currently fluttering around the $3,000 level cannot be harming a company which registered 347,000 ounces of gold in 2025.
Given the company's share price performance this year, breaking through a downtrend since 2011 and recently achieving what we judge as an official Big Picture higher high, our inclination is toward optimism for the future, simply from a chart perspective.
Obviously, if the chart is looking good, it is a fair indication of growing market confidence rather than the usual internet chatroom-driven flurry of movements. For this reason, we dare to suggest Hochschild may be worth taking a hard look at.
Presently, above 266p suggests the potential of ongoing gains to an initial 281p. In the event the share price closes a session above 281p, our secondary ambition becomes fairly confident looking at a future 352p. Such an ambition risks puncturing the visual glass ceiling which exists just over the three quid level, entering the realms of Big Picture calculations where a long-term attraction shall be seen as coming from a distant 586p! We tend to take these breaks of a glass ceiling seriously, the long-term rarely proving a disappointment.
If everything intends to go wrong for Hochschild Mining, their share price needs to dig below 238p to give the first indication of trouble, entering a realm where an eventual reversal to a ridiculous looking 112p becomes possible.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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