Wednesday, December 16, 2009

Alert Great Panther Silver Limited TSE:GPR

Weekly chart


You can go long on Great Panther Silver Limited.
Marketclub - Great Panther Silver Limited Trend Analysis, it is free, so try it.

I want to shine some more more light on how to trade the medium to longer term and for that I will use Great Panther Silver Limited GPR.TO to clarify this. Most of the alerts that I have given since august on this blog, were short trades of a couple days, up to 10 days. And that is not at all terrible, because all those alerts have produced on average a profit of 20%. I am satisfied about the past results and I hope you are also?

But I want to continue to better my techniques and educate myself more, and also, I want to focus a bit more on the middle to longer term trades. And this to be able to score the big profits.

By this, I do not mean to say that all new trades will be middle to long term trades, but if possible from time to time a trade like that will be posted.

On to the chart, what we do is, firstly we take a look at the weekly chart. I always do so to make sure I get a clear view of where we are. Always make sure to look at different time frames, so that would be for instance the daily, the weekly, the monthly, 6-months, year, 5-year,...to get a better understanding of the stock.

OK, on to our analysis of our Silver Mexican Panther. I've added some lines on the chart to visualize where we are.
  • First, we have support 1 which is a trend line on which our Panther slowly but steadily moves upwards on.

  • Second, we try to find where the MA 30 sort off flattens out (light blue line) which was somewhere around May 2009. The price of the stock must be above this line before we even attempt a purchase.

  • We draw a new line above all our highs namely resistance 2.

  • Somewhere around June we saw a first breakout, our Panther doesn't seem to find enough sustenance at these lower plains and has to move up to higher country and does so on three times more volume. It would seem our Panther has put on some muscle since then which must be from walking the support 1 trend line.

  • In July there was the usual re-test, well you know how it is. Maybe the Panther got a bit nostalgic, longing for times gone by but on the march back down realization struck and our Panther realized the reason why it left those lower plains. Not enough food there. So up it went again.

    Actually this would have been a great moment to make an entry into the stock. Sometimes investors will invest half of what they intended to invest when a breakout occurs. Then, when the stock pulls back or does its re-test then the second amount gets added to the already existing position.

  • Maybe good that that time has passed and we are seeing a new entry appearing.

  • We notice a very high volume in November which is a whopping 9.7 miljoen and it seems our Panther is trying to break resistance 3.

Why the trade?

If you read the analysis then you will understand that the course of events for Great Panther are as one would like to see...very favorable. We also see a Symmetrical Continuation Triangle (Bullish). Great Panther is a strong growing silver producer in Mexico with a lot going for it. Only recently they acquired a new project :
Great Panther Acquires Strategic Claim at Topia
Another point to look at is the price of silver which also seems to be on a path to earlier highs which would be bullish for juniors leveraged in silver. Our intention is for Great Panther to be a long term hold.

Great Panther Silver Limited - Building a Profitable Mid-Tier Silver Producer
Current price
0.89

Target
First a break out, after that 1.4$

Links
Great panther website

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