Yesterday it was mentioned that any pullback to the R2 level (former resistance, now support) on SIL (Silver Miners ETF) would offer an objective entry or add-on to an existing position. So far today that is exactly what has happened with SIL making a fast drop to that level shortly after the open today, a move that serves to shake out weak hands, and then powering back up very impulsively to take out yesterday’s highs. All-in-all bullish action so far. GDX experienced similar price action to make a backfill of the yesterday’s gap although the gold stocks as a group have yet to take out yesterday’s highs (although AUQ has by a small margin).
SIL 15 minute June 6th
I’m keeping a close eye on GLD & SLV as the success or failure of these most recent gold & silver mining stock trades will likely depend on whether or not the underlying metals move higher or lower in the coming days. I’m sticking with my profit targets on these most recent trades for now but don’t hesitate to book partial or full profits if your own trading style or plan differs from mine. Also keep in mind that these trades have the potential to morph in to longer-term trades with additional price targets likely to be added should the metals and miners continue to exhibit bullish price action in the coming days/weeks.