HIL - Bigger thing to come ?

A disclaimer:- This blogger has bought and still hold this stock. This is NOT a financial advice or a solicitation to buy or sell the stock discussed below which should be treated as an educational discussion.

Ever since HIL Industry confirmed its buy signal around early June this year, this stock has been rallying like a rocket. Even though it is near one of its all time high, there seems to be some bullish talk around the market. At least my broker is telling me that she is receiving more and more inquiry these past few days. She thinks there may be some rumors going around.


And that brings me back to the chart to have another look at it. First I notice at both its daily and weekly chart, there is a XXX bullish inverted Head & Shoulder pattern which usually mean this could be just the "you ain't see nothing yet" kind of up moves.


At it is now, its price has already reached the 100% retracement of its prior smaller wave. But if we look at the bigger wave count, it has just reached the 38%. So if the inverted H&S pattern would work out to be true, then the next upside targets would be at 1.06 (50%) or 1.29 (61.8%). The bullish pattern is backed by a bullish divergence at the MACD indicator at both its daily and weekly charts.


What's next ? How would I know ? Maybe some retracement to form the right shoulder properly before the next blow up to shock and awe ?