SIL looks to be offering an objective entry here as it approaches dual intersecting support levels; the backtest of the recently broken descending channel as well as horizontal support. A stop on a daily close below the 11.60 area, which would be just under the bottom of the July 10-11th gap, would offer an objective stop level with profit target TBD soon. Remember, this is a very volatile sector so consider adjusting down your position size and utilizing a scale-in strategy with the mining stocks or their respective tracking etf’s (GDX, GDXJ, SIL, etc…).
