CDE is in the Silver and Gold space and should benefit as well with a push in Gold. Technically this chart is set up very nicely. We can see that CDE is trying to break away from the downward trend it had been in for a couple of months. It looks to have formed a base and is now trying to get going. It does have some work to do with a couple of areas of resistance depicted by the Light Blue lines. The second light blue line identified by the letter B also coincides with the 38.2% Fibonacci Retracement,the 200 SMA, and the Left Shoulder. If that area can get taken out I can see CDE push to the NL Measured Move around $21 which is right by the 61.8% Fibonacci Retracement area and possibly attempt a full 100% Retracement. We are also starting to see volume generally accumulate as of late on the up days, so keep an eye on volume for confirmation of the move as well, it can show conviction.
If this stock can clear the the first light blue line depicted A, I will put on a starter position with an initial stop below the lows of 4/19/10 @ 15.75. I will look to add to the position if it makes it through the second light blue line depicted by letter B which also comes in at the 38.2% Fibonacci Retracement, the 200 SMA, and also the Left shoulder area.
If my thesis is correct I will trail my stops up as the position starts moving the way I think it can
NL = Neck Line
L = Left Shoulder
H = Head
R = Right Shoulder
Initial Risk = roughly !.25
Possible reward $4.00 to $8.00, the latter being if we retrace the full 100% of course
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