EGO (Eldorado Gold) Daily Chart
The EGO (Eldorado Gold Corp) trade setup from the Live Chart Links page triggered an entry today on a solid break above the bullish falling wedge pattern. The price targets remain the five horizontal lines previous posted on the chart for now with specific suggested profit taking levels to be added soon. Stops should be commensurate with one’s preferred profit target level(s) and cost basis preferably using an R/R of 3:1 or better. Click here to view the live, annotated chart of EGO.
I continue to favor a scale-in, shotgun approach to the mining sector (i.e.- spreading my capital among the most attractive candidates in the sector and purchasing relative small lots over the next several weeks) although most of the mining sector trade ideas, such as EGO, have charts with well-defined entry criteria (e.g.- the upper trendline of this bullish falling wedge pattern) and well defined exit points (e.g.- T1 on this chart is the primary downtrend line while T2 is a well-defined horizontal resistance level which is likely to produce a reaction). Therefore, many of the trade ideas in the mining sector could be taken as normal trades (e.g.- a full position upon breakout). However, keep in mind that next to the shipping stocks and solar stocks, the miners are one of the most volatile groups of stocks with daily double digit gains and losses more the norm than the exception (such as the previous posted ANV breakout, up 11.83% today). As such, consider adjusting your position size on these trades accordingly, maybe as little as 20-25% your average position size on some of the lower-priced, more volatile names (even less if taking a shotgun approach and diversifying across multiple positions in the sector).