SSRI (Silver Standard Resources) will be added a long setup on a break above the bullish falling wedge pattern on this 60 minute chart, which includes the entry criteria & targets for this trade idea. On the daily chart, SSRI it has fallen to support while at an extreme oversold reading of 20.41 on the RSI.

My commentary on the gold & silver mining stocks has remained light because I haven’t had a very strong opinion on the near-term direction of the sector lately. Despite the fact that the shiny metal has been grinding the will (i.e.-sentiment) of gold bugs down over the last couple of months as it works off the overbought conditions of the impressive run earlier in the year, from a longer-term perspective, the charts remain bullish at this time. In fact, $GOLD (spot gold price) has now pulled back to the primary uptrend line that I highlighted in the Dec 31st Time to Start Buying Gold post. As with back then, gold (and my preferred trading proxy, the mining stocks) once again offers an objective long entry here with my preference again being a scale-in approach to the stocks with the best R/R profiles. More on gold, silver & the mining stocks later but I will say that at worst, I can see a marginal new low on gold in the coming months but it would take a very large drop below the mid & late 2013 lows in gold to negate the strong positive divergences in place on the weekly time frame.

As far as the SSRI setup, this stock is one of the most explosive, highest beta stocks in the sector. My preference is to adjust my position size to account for the additional expected volatility and above average gain/loss potential. Most importantly, like all trade setups, SSRI is only a trade setup, not an active trade, until/unless the stock breaks above the 60 minute downtrend line, thereby triggering an entry. Despite the bullish developments on the long-term charts over the past 6 months, the gold & silver mining stocks are still very much entrenched in a near-term & intermediate-term downtrend and as such, any long-side trades are counter-trends at this time.