regarding the HL trade below, or any mining set-ups that i might post soon for that matter, please keep in mind that SLV is near the apex of this descending triangle pattern (daily chart) and poised to break one way or the other very soon, almost certainly this week. therefore, i would caution against entering positions on any mining stocks that break-out or break-down until you see how this pattern in SLV resolves itself.
you can reference my recent weekly chart on GLD using the “Posts By Symbol” drop-down box on the right of the page. GLD is also in a precarious technical position as it continues to struggle with the bottom of it’s multi-year channel (uptrend support line). support is support until broken, so gold and silver could bounce sharply off these levels soon. however, a break below (other than a quick bear-trap/flush-out move) would be very bearish from a technical perspective. it is always beneficial to confirm any gold or silver miner stock trades with the gold and silver metal charts. although there are times that the miners and metals diverge for brief periods, trading is all about putting the odds in your favor. with gold and silver poised to make potentially large moves in the very near future, gains and/or losses can and most likely will be magnified in the mining stocks.