CDE, Coeur d’Alene Mines

cde sept 2012cde b sept 2012

Coeur d’Alene is an interesting high Beta precious metal (silver) stock. Had you bought this as a hedge against the financial market falling apart you would not be a happy camper given that you are left with about 1/3 of your money. As far as the future is concerned this stock might give a hint as to what is in store. From the big chart it is clear that this stock has made three A-B-Cs in succession leaving us guessing what the next move might be. The shorter term chart shows the last A-B-C in more detail. Superficially it looks like an A, triangle B and then a C equal in size to the A. There is a problem with the triangle, the e leg goes too high but lets ignore that. Looking at the RSI (Relative Strength Index) the stock is more overbought than any time in the past 3 years. It is doubtful that the stock will trade above , say , $31 where it is already up by about 100% from a month and a half ago.

A similar message can be drawn from the platinum ETF PPLT;

pplt

It is by no means clear that this one should go up much further, in fact it looks like it is about to reverse. The light is still amber in our opinion.