Possible False Breakout Trade in PAAS.TO (no trade yet)
No trade yet. Watch for a rally above $19.30 which could signal that a false breakout below the prior lows occurred. IF IT KEEPS DROPPING, WITHOUT GOING ABOVE 19.30: NO TRADE.
Keep a tight stop loss below the recent low. Conservative target at the descending trendline still offers a nice reward:risk, with potential for a huge reward:risk if the price breaks above the triangle down the road.
I don't love the silver/gold space right now, as the sector overall is pretty weak. For that reason, if triggered in to the trade, some sort of trailing stop loss is recommended in case the price starts dropping before hitting the target.
This stock is prone to gaps. Tread carefully, as a stop loss may not get you out at the price expected.
Keep a tight stop loss below the recent low. Conservative target at the descending trendline still offers a nice reward:risk, with potential for a huge reward:risk if the price breaks above the triangle down the road.
I don't love the silver/gold space right now, as the sector overall is pretty weak. For that reason, if triggered in to the trade, some sort of trailing stop loss is recommended in case the price starts dropping before hitting the target.
This stock is prone to gaps. Tread carefully, as a stop loss may not get you out at the price expected.
Cory Mitchell, CMT
Stock and forex trading insights at tradethatswing.com/
Stock and forex trading insights at tradethatswing.com/