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Silver Std. Res. - SSRI - close: 11.97 chg: -0.28 stop: 12.55

Company Description:
Silver Standard Resources Inc. is a well-financed silver resource company with $44.8 million in cash, 1.95 million ounces of physical silver, and marketable securities with a value of $3.8 million. The company continues to seek resource growth through acquisitions and exploration and development of its own projects. (source: company press release)

Why We Like It:
The XAU gold & silver index is hitting new five-month lows after its recent breakdown below the 200-dma. The XAU's point-and-figure chart shows the sector in a descending triple-bottom breakdown sell signal. With the sector index showing weakness odds are strong that SSRI will continue to trend lower as it begins to fade from the top of its descending channel. The stock has been channeling lower since it peaked in October. More recently SSRI has spent the last four sessions trying to breakout over the top of its channel near $12.50. The technical picture supports the bears with short-term oscillators rolling over and the P&F chart pointing to a $6.50 target. We believe the drop under the $12.00 mark is an entry point for shorts. We'll use a stop at $12.55 and target a drop to the bottom of the channel near $10.00.


 

Picked on January 30 at $11.97
Gain since picked: - 0.00
Earnings Date 12/16/04 (confirmed)
Average Daily Volume: 575 thousand

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