Taking a quick look at the above chart we can see that Silver Standard Resources Limited (SSRI) could go a little lower without breaking the support line however we would like to see it break out of this wedge and head north and surpass its recent high of around the $25.00 mark. The technicals are fairly neutral at the moment but they are heading lower and could signal a buying opportunity shortly.
For a short term trade to be successful we need to see a really good aberration either way, whether overbought or oversold. SSRI has recently been languishing in the overbought zone but now it is pulling back and we need to keep a close eye on it to see if the pendulum will swing further into the oversold zone and thus present us with a buying opportunity.
This not a signal to buy but a heads up about what we are thinking about doing when the time is right. We will observe for now and let know you when we think the time is ripe to move on this one.
Have a good one.
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