Dig This: SSR Mining Could Rise 40% From Here

My series on precious metals continues with a look at SSRM.

So far this week, we have looked at Franco-Nevada (FNV) and Newmont (NEM)  as part of our precious metals series. Next up is SSR Mining (SSRM) .

Longtime gold and silver bugs may remember the company was formerly Silver Standard Resources based in Vancouver. They mine gold, silver, zinc and tin and they own the largest silver mine in Argentina.

Let's dig into the charts and indicators. 

In the daily bar chart of SSRM, below, we can see that the shares have been slowly drifting lower since early August. Prices are currently trading below the declining 50-day moving average line and the cresting 200-day simple moving average line.

The trading volume has picked up since the beginning of the calendar year and the On-Balance-Volume (OBV) line is still in a downtrend but shows some improvement since January.

The trend-following Moving Average Convergence Divergence (MACD) oscillator is crossing to the upside from below the zero line. This signal is a cover shorts message. 

 

In the weekly Japanese candlestick chart of SSRM, below, we can see that the shares tripled over the past three years. Prices are below the cresting 40-week moving average line but a rally above $20 will turn things more bullish.

 

The weekly OBV line shows a little weakness since July. The MACD oscillator is below the zero line in sell territory. A near term rally for SSRM could generate a buy signal. Do you see the lower shadows in January?

 

 

 

In this Point and Figure chart of SSRM, below, we used daily price data. The software is suggesting a price target of around $24. 

 

 

 

Bottom-line strategy: Aggressive traders could go long SSRM at current levels risking to $15. Our first upside price target is the $24 area.

 

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