NFTRH+; a miner sneaks out of a downtrend

SSRM will be subject to the precious metals miner rally and also to earnings season upcoming (SSRM reports on November 4th), which I don’t think is going to generally be very sector-positive with the likes of energy, mining materials and human resources rising in price during the previous quarter. If that is the case it would be a matter or whether or not the market has already discounted that and is looking ahead.

Preamble aside, I am a chart buy and the chart guy sees a long correction in SSRM and a combo of a trend line break and takeout of the SMA 200 for the first time since the correction began with the gold stock sector back in the summer of 2020. Earnings may or may not provide an opportunity to buy better than today – and I am still considering what I will do personally and when I will do it – but a trusted source loves the company fundamentally. I trust my trusted sources (Fred, Mike and Joe) who have time to keep up on these things, unlike your letter writer. :-)

[edit] a second source just checked in with “I hated the merger” when it went down. He has not taken a fresh look lately. So, caveat…

If you like gold stocks here and now you might want to consider this one, both for its management/business/assets and its chart, which has been taken to the woodshed and left there for dead. As with sexy 2020 items like Pot stocks and Solar (per Trade Log I added TAN today), the gold stocks may face some tax loss selling pressure as well in Q4. The correction began half way through 2020 so it’s probably not as bad as the sexy stuff that blew out at year-end.

I’ve noted two gaps on the chart, one filled and one open. The lower gap does not need to fill any time soon but it is there nonetheless and I’d have preferred it not be there. Recall that HUI has not filled its lower gap at 212 (the next downside target should 230 fail to have been ‘the’ one) either, so it’s a sector thing.

Final note: I plan to add SSRM and BTG to the regular gold stock chart rotation in NFTRH.

A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.