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Apex Silver Mines has been on the express elevator to heck in the face of strengthening gold and silver prices. It seemed to find buying support today and if the precious medals continue to rise (which may be a big if) then this would be a good candidate to watch for a sharp move higher. In this type of chart formation it is quite likely that a sharp reversal may occur probably up to the $11 area.
With the positive divergences created over the last few days, SIL can likely be slowly accumulated with a stop just below the recent lows, but only in small size until the trend is truly confirm. However, the potential for an upward spike is too tempting to not hold some position since the risk reward is healthy.
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blacktuna
Jul 12 at 6:18 ET
Silver is looking interesting these days and definitely hiking up.. Do you think and index play (SLV) is better or worse than and individual stock play (SIL, PAAS).
Would love to hear Arawak's take on this as well..
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CountdeMonet
Jul 12 at 2:29 ET
Silver does seem to be breaking out and given an established uptrend in it then it would be the safer bet. Silver has lagged behind gold and tends to catch up over time, and with technicians talking about new all time highs for gold that should support the move.
As I indicated, SIL should benefit from this in a rapid move. So it depends on your risk tolerance. SLV would probably be safer but risk/reward would suggest SIL. Stop/loss is more defined for SIL as well with the 52 week low setting that.
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CountdeMonet
Jul 15 at 1:27 ET
Bueller?
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CountdeMonet
Jul 16 at 11:45 ET
May get a chance to buy more on a pull back to the high $4's.