Sunday, June 21, 2009
Here's an A-B-C you can play for a bullish trade right now
I know my last post is not what Gold bulls want to hear, so here's a trade that's ready to go first thing Monday morning for those itching to play the bullish side. Silver miner Coeur D'Alene (ticker: CDE). This is a textbook A-B-C deep correction template (see prior post for explanation) and the volume on Friday was insane right at the bottom. To the 6 month daily chart:
You could buy this first thing Monday morning if it hasn't gapped up (don't chase it higher) and it should be good for a 20% gain from Friday's close. Protect yourself from downside losses using a stop loss and don't get too greedy on the upside. Once we get to 13 on this stock, I would either sell or switch to a trailing stop loss to protect profits.
I am not as bullish on silver miners right now as I am on Gold miners and would consider this an intermediate-term trade, not a buy and hold. Buy and hold for silver miners comes later.