The Silver Prices Newsletter signalled an additional BUY on Silver Standard on August 20th at $28.99 as we felt the stock had been severely oversold and was ripe for a short term trade or to purchase a position for the longer term.
Since that BUY signal, SSRI has risen nearly 40%, rebounding back above its moving averages as we felt it had to after such a correction. We are still very bullish on silver, silver stocks and in particular Silver Standard in the longer to intermidate term. However in the short term we feel that Silver Standard is due a correction, and perhaps a small consolidation to digest its recent gains. We signalled to HOLD/TAKE PROFITS on Silver Standard at $36.46 and although we may have missed the exact top at $40.00, we were not far off ($3.54, within 10% of the recent peak).
Also SSRI is beginning to correct now in our opinion and could correct to the moving average lines above or perhaps further. Regardless of where this stock corrects to, we would like to see the chart looking a little healthier, technically speaking before we mark this stock as an outright BUY again. The black line has crossed the red on the MACD indicator and this now appears to be heading south, which is a bearish sign for Silver Standard. Similarly the STO is moving downwards and the Relative Strength Index is suggesting that at the very least Silver Standard is in for a period of consolidation.
We are still holding on to a core position in SSRI though, with the view that this stock is moving a lot higher in the future as the silver bull market continues to $20 and eventually even $100/ounce. Stay updated on when we signal a BUY again on this stock, other silver stocks and silver bullion itself by subscribing to our FREE Silver Prices Newsletter, just click here and enter your email.
Silver Standard trades as SSRI on NASDAQ and as SSO on the TSX.