Pure Spec trade on Silver mining company : EDR on Tsx

Technicals

MACD has slowing upward momentum as the histogram is barely positive.
Slow stoch, watching the purple line.  If that holds would be confirmation of the move up.
ADX is still quite bullish.


I picked this up near the end of the day as it appeared gold / silver were bottoming out.    At least for tomorrow, as GM IPO will in my opinion keep the market strong.  however, if the IPO fails, it will be a symbolic blow to the current state of the economy.  On the other side, it could be just a normal options expiration week.

My strategy has and I will be going long on precious metal mining stocks, and other commodities, and short the market via ETF on the way down.  The potential for EDR to get back up to at least 50% of the previous move is quite high.  However, i am keeping tight stops as the market has had very strong volume on the downside.  A likely future outlook is a bounce before another lower low.  I will attempt to short that bounce if and when it occurs, unless there is strong buy volume behind an up move on monday.

Update: Silver buying increasing in Asian markets.

  A move of approximately 3% in 24 hours.  The vast majority of the move occurred during the Asian markets. 

Look at the perfect test of the $25.00 mark.