Precious Metal in play
I have been waiting for this setup to develop for a while now. Today gold is breaking above its October high. It is at the same time challenging its weekly downtrend line dating back to April 2020. With persistent inflationary pressures we already saw the energy sector being the best performing sector in October. Big money is flowing in these sectors and precious metals could be the next one.
Today it certainly looks this way. I like Silver for its extra leverage and industrial utility over gold so I showcase Silvercorp Metal (SVM) is poised to breakout.
Note that SVM has a lot of exposure to China so you need to consider this in your thesis. For me it is a double bonus as a lot of the fear surrounding China has already been discounted in my opinion.
Technically we have a very nice head & shoulder bottom with a target in the $6.50 area and Fibonnaci extension between 6.05 & 6.63. I think $6.50 should be a minimum target. With a $0.30 stop from here and $1+ target from here, a 4:1 win loss ratio is very appealing to me.
Assuming we do breakout from here within the next few days, we should see this target by the end of January 2022
Finally earning just came in so that potential adverse reaction is out of the way, paving the road for the next 91 days free of that obstacle. With disappointing earnings and such a strong positive reaction means the street isn’t bothered at all by the short coming of the actual result of Q 0.06A vs 0.10E
I like my odds here!
Today it certainly looks this way. I like Silver for its extra leverage and industrial utility over gold so I showcase Silvercorp Metal (SVM) is poised to breakout.
Note that SVM has a lot of exposure to China so you need to consider this in your thesis. For me it is a double bonus as a lot of the fear surrounding China has already been discounted in my opinion.
Technically we have a very nice head & shoulder bottom with a target in the $6.50 area and Fibonnaci extension between 6.05 & 6.63. I think $6.50 should be a minimum target. With a $0.30 stop from here and $1+ target from here, a 4:1 win loss ratio is very appealing to me.
Assuming we do breakout from here within the next few days, we should see this target by the end of January 2022
Finally earning just came in so that potential adverse reaction is out of the way, paving the road for the next 91 days free of that obstacle. With disappointing earnings and such a strong positive reaction means the street isn’t bothered at all by the short coming of the actual result of Q 0.06A vs 0.10E
I like my odds here!
כתב ויתור
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