AUY daily Jan 22nd
AUY (Yamana Gold) hit the first profit target (downtrend line) yesterday for approximately a 16% gain since the Dec 31st Time To Start Buying Gold post. As the mining stocks were suggested as scale-in trades with soft vs. hard entries, one’s total gains at this point will vary depending on their average cost basis. I remain very bullish on the mining stocks although they’ve have quite a run in the three weeks since that post was made, with several of the individual mining stocks from the Live Chart Links page hitting their first profit target in the last day or so. As such, the odds of an overbought pullback are elevated at this time so best to be selective on which stocks to continue scaling into. As an active trader, I will often take partial or even full profits when a price target is hit (assuming that the intraday charts indicate that a pullback is likely), re-entering the position on either a pullback or a break above that resistance/target level (again, assuming that the charts confirm). This is what’s referred to as micro-managing a position.
As the charts for both the mining sector and all of the individual mining stocks on the Live Charts Link page still look constructive from an intermediate and longer-term perspective, investors as well as swing & trend traders shouldn’t be overly concerned with any near-term pullbacks. Of course, it is always best to hold off on adding to a position as it approaches a resistance level or price target and take advantage of any decent pullbacks, especially pullbacks to support, to add to an existing position or initiate a new position. All 13 of the gold & silver mining stock trade ideas from the Live Chart Links page, including GDX & SIL, have been updated with a few new target levels or notes added to some of the trade ideas. There are quite a few additional bullish charts in the sector but in trying to keep a manageable list, I don’t plan to add any additional miners as trade ideas at this time although I’d be glad to share my opinion on any names that you are following.