Most of the important Senior Silver Miners are successfully breaking above their former 2019 & 2020 highs. Breakout cycle is just about 1 week old. A baby bull, so to say... Therefore that`s why the Silver Miners bull cycle should have some positive weeks ahead of it. And this is why the Silver Miners should be the place to be where fast money can be made on the long side for several weeks. Buy the Dips!
Especially at SSR Mining, some very bullish things came together before the breakout succeeded in the end. Accordingly, the buying interest was already huuuge before the breakout above former 2020 highs succeeded finally on past week Friday as any Senior Silver Miner (Coeur Mining/First Majestic Silver/Pan American Silver) jumped by large as silver rallied by +5%, confirming it has started a strong bullish breakout cycle:
SSR Mining Inc. (SSRM) is NASDAQ listed Canadian Precious Metals Miner, that is engaged in the acquisition, exploration, development, and operation of precious metal resource properties in the Americas. Its projects include the Marigold mine located in Humboldt County, Nevada, the United States; and the Seabee Gold Operation located in Saskatchewan, Canada and the Puna Operations in Jujuy, Argentina.
On 05/11 SSR Mining and Alacer Gold said that they have reached a definitive agreement to combine in an at-market merger of equals. This deal creates a leading intermediate $4B gold and silver producer with likely very robust margins. The combined entity will continue as SSR Mining Inc. On top on 05/14 SSRM reported fine 1Q/2020 earnings.
Large buying kicked in 4 days before breakout above former 2019-2020 tops resistance rail what now should have morphed to stronger 2020 Support line. Usually 2020 Support line will now act as strong support on weekly base. 2020 Support line runs at about 19$ for the days to come.
==> This unusual volume accumulation shortly before and shortly after breakout is a good omen for more bull to come and tells us we have to buy a dip or pullback what might be due next as shares now likely have printed a nearterm or even a shortterm top ==> on the daily chart we recognize a bearish reversal candle for Thursday. On weekly base the shares have not been able to overcome their years highs resistance:
Precious metals stocks and above all the Silver Miners are notoriously volatile, with prices rising just as swiftly as the fall. A prime example is the penultimate past week candle of SSRM what is he 9th week candle of at # 1 // 9$ // 2020 Low started bull market. Often when bull cycles or rallies show unusual steep ascent the rise from time to time is disrupted by sharp, and even for the trained eye deep retracements and sell-offs.
And we can now again speculate on such a hard, fast drop or profit-taking event as the SSRM price exactly turned into red after the natural lower line of 2nd double arc upmagnet/uptarget within at # 1 // 2020 Low overlayed weekly 2 Candle up was finally worked off resp. tested for the very first time.
==> This week, the 10th of rally, at year high (22.50$) and open finally worked off weekly GUNNER24 Uptarget of lower line of 2nd double arc. Also and at the SAME TIME the price found again resistance at the dark-red highlighted "Bull Market Highs Resistance Line" and this double party pooper on combined weekly and yearly base could lead to a next sharp pullback, a weekly dip what might be able to test back the 1st double arc environment, what would be the classic backtest of former printed year 2020 highs environment.
Perhaps the 18.37$ price is very attractive pullback target. This is existing # 9-opening support magnet. This support is in the middle of the 1st double arc range what for the future should offer strong weekly support area.
==> Dip buying at a 18.37$ makes sense!
Please count the rally cycle with me now:
Week No. 8, Fib number, found natural resistance at 1st GUNNER24 Double Arc environment. Rally # 9 succeeded in printing higher rally highs but also higher year highs. This activated the next Fib number in the Fibonacci sequence as next due important = possible time trigger, where the bull/rally should be allowed to turn or end. ==> Time factor points to the outcome that only the rally week # 13 should have the time power to force SSRM shares into an important final high.
And this is why a backtest attempt of weekly 1st double arc support usually should succeed in the end and in any case and afterwards the still ongoing rally cycle at minimum should test back the 2nd upmagnet resistance environment again, with high odds even able to print some higher rally highs at/near/close of a rally week # 13-Fib number, the possible coming trend changer regarding the time factor.
For a bull market week # 13 the lower line of 2nd double arc upmagnet resistance runs at 21.75$ and therefore the shortterm uptarget of this buy a dip SSRM-long-setup is the 21.75$/rally week # 13 next due Fib number!
However, usually SSRM should advance a little bit higher. Likely higher into 23$, maybe up to a 25$ before this rally - maybe! - wishes to print its first intermediate high. To understand this thesis we switch to the monthly chart and the valid GUNNER24 Up Setup in the monthly chart. This starts measuring to the upside at the important bear market low of 01/2016 and is a very classic 8 Fib number up setup:
Setup measures from final low to final top of 2016 what is major countertrend high within still runing DECADElong bear market. Mid-2019 the 1st double arc in trend direction was tested for the very first time and there the highs of 2019 have arrived. Testing of the 1st double arc magnet only ended at March 2020/April 2020 lows whereby these printed annual lows were again additionally supported by the 1*2 Support Angle. 1*2 Support Angle is now yearslong holding support on monthly closing base and on final year low base. 1*2 is big, big yearlong bull market support and most ideal backtest support once this monthly uptrend has finally ended.
This last test of 1st (support) from above and next successful backtest of important 1*2 Support Angle was at combined monthly & yearly support magnet and this major event triggered the rally what obviously needs the very first test and final work off of activated lower line of 2nd double arc upmagnet/uptarget.
And this major uptarget magnet resistance is around 22.50$ to 23.00$ for the coming month of 2020 June, the time window the weekly rally cycle is allowed or expected to print the next important or maybe final rally highs for SSRM.
The lower line of 2nd hit is probably a necessity if I look at the currently reached rally highs which are already in striking distance to the pending lower line of 2nd monthly uptarget so that it can hardly escape the magnetic effect of the lower line of 2nd...
We can wait for that this future lower line of 2nd as the ENTIRE future 2nd double arc environment radiates some very strong future uptarget resistance energy once finally reached simply because the 1st double arc already did this and was responsible rail for printing the final highs of 2019 and that`s why a 23$ up to a 25$/June 2020 could be a main target for SSRM!
==> IF the SSRM shares dip hard and sharp the coming days a first and above all combined major monthly support magnet is the 19.40$ for the month of May 2020. There unites A) the 1*1 Gann Angle, what is confirmed-important rail the price sometimes likes to obviously orientate itself. Green and red arrows.
B) with the former 2020 highs horizontal support environment. These 2 things form obvious and very attractive backtest magnet now.
But as I tried to explain at the beginning, sometimes the obvious natural strong supports in the Silver Miners universe do not work exactly, because the emotions from time to time become too extreme.
Therefore maybe rather the 18.37$ within a sharper daily pullback cycle?
==> After such daily dip the 21.75$ gets shortterm weekly uptarget. Possible 2020 main uptargets are the 23$ and the 25$.
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