Trade Idea - SILJ
A trade I like...a trade I took. Trading the Junior Silver Miners ETF for a bounce.
Short, Sweet, And To The Point.
SILJ - Junior Silver Miners ETF
My thoughts: price has run up 50% in recent months from $8 to $12 and has recently pulled back. In fact, the pullback is EXACTLY a 50% retracement of that move up. A pullback from $12 to $10. Healthy.
Fundamentally speaking, silver has an incredibly bright future.
Technically speaking, I love the setup.
I’m a buyer.
SILJ Daily Chart. Let’s Get To It…
No lines. No bias. What do you see?
Added:
150 day moving average. Sloping from bearish…to bullish. Price bouncing nicely off support.
Same chart.
Price bouncing off rising trendline. Green Arrows.
Same chart.
Support/resistance line added.
My Opinion
The probabilities favor a bounce in price. The risk to reward ratio is in favor of buying into this opportunity.
This does not guarantee SILJ WILL bounce. I’m merely demonstrating the high probabilities and confluence of indicators.
If price drops below $9.75, I’m out. That’s a $0.25 risk for $1.00+ reward, per share.
Have a great weekend!
Eric