As I noted on Friday, some of our mining stocks are starting to break out again. EDV, OLA, AMX, MIN, FNV and a few others made nice moves into Friday's market close, and if gold opens up higher overnight I would expect many of the others to follow suit. I have added eight new names to the watch-list and I think a good strategy for this week is to focus on a miner or two but also look at some of the newer names from other sectors in case the mining trades are short-lived.
The charts for the new additions to the watch-list are discussed below.
PAC has beautifully shaped 50 dma that has been acting as support for a while. It could be bought right here or one could wait for a more definitive breakout. I would use the 50 dma as a stop loss.
CJR.B is technically an early buy here because the 50 dma has not completely flattened out but Friday's breakout could be bought with a tight stop under the 50 dma or a loose stop under the last low. I would lean towards the loose stop but would perhaps take a smaller position.
This is textbook reversal on a strongly trending stock (ZYME). The stochastic indicator has also turned up nicely. I would place the stop loss under the last swing low, which is basically at the 50 dma.
CCW is a textbook emerging trend with the price recently crossing above a flattening 50 dma. It has now made a higher low and looks ready to continue up. I would use the higher low as the stop loss.
QTRH reversed hard at the 50 dma on heavy volume. I would use the last swing low as the stop loss.
We already have a lot of silver miners on our watch-list but I included EDR here because it has been holding up better than many other companies. It appears to be putting in a bottom but has not launched quite yet. The stop loss would be just under last weeks low.
CPH has already broken out and looks like it could really get moving. In this case, I would use the last swing low as the stop loss.
MTA has been reversing upwards near the 50 dma, so I am just waiting for a more pronounced breakout from the current area to buy it.
Have a great week!