Although I am a bit skeptical of whether or not the miners will make one more thrust to new lows or not, I will start posting a few of the more attractive looking setups as I’m sure there’s a lot of interest in this sector right now. EGO is one of my favorites as it has fallen to a nice support level on the weekly chart and can be entered for at least a quick trade (which could possibly morph into a longer-term hold) on a break above this 60 minute bullish falling wedge pattern.
For those interested in the mining stocks, I basically see two ways to play it: Longer-term investors could begin scaling into the best looking names, allowing for the possibility of another thrust down to a marginal new low in the sector to continue adding to their positions. If prices continue to move high, you would continue to add to your position(s), particularly as key resistance levels are taken out or on pullback to support. Again, I want to emphasize, especially to less experienced traders that this sector, especially many of the individual mining stocks, can be extremely volatile at times so make sure to adjust (down) your position sizing accordingly. Here are the 60 min & weekly charts of EGO. As I’d like to get a few more charts out asap, I will add the actually price target levels asap. For now, those levels are marked with the dashed horizontal lines and should be easy to replicate on your own 60 minute chart. Also note that EGO is now breaking out as I type and as such, will be considered an active trade if we get a 60 minute candlestick close above the wedge:
