We are pleased to report that Silver Standard Resources Incorporated (NASDAQ:SSRI) gained a massive $3.49 Thursday as it continued on the recovery trail.
Silver Standard (SSRI) has a market capitalization of $2.11 billion and is one of the largest stocks in the silver-prices portfolio. There is a school of thought that says the big profits will be confined to the junior silver stocks sector, which we don’t disagree with, however we do believe that quality silver stocks will perform and bring us good returns. Do bear in mind that picking the right junior stock is also difficult as some of them may not find any silver and will not be around when this market explodes across the finishing line. And a gain of 11.47% in one day is not too shabby, probably one of the best silver stock gainers Thursday.
A quick look at the chart shows SSRI hitting a low of around $28.00, consolidating, then hitting the recovery trail with an $8.00 gain or a rise of 21% from the low that it hit during the recent market shake out. The technical indicators are all heading north and will soon be in oversold territory. Also note that the 50dma is heading down and could cross the 200dma, which would be a negative sign for the stock. However we need to balance this with a possible surge in silver prices, which could drag silver stocks upwards negating technical analysis, albeit for a short time.
For those of you who are new to our web site we have attached two charts below so that you can see what we have been writing about this stock.
The first chart was attached to our article recently giving a ‘buy stocks’ call as we were of the opinion that SSRI was oversold and therefore presented us with an opportunity.
This next chart shows when we first gave a ‘buy stocks’ call and bought SSRI earlier for the princely sum of $19.98.
We are also of the opinion that silver will outperform gold so if you have the time you may wish to read this article entitled Silver Going For the Gold.
Finally, when investing in the stock market, keep an eye on silver as it is going to be a very exciting ride, volatile, bumpy, exasperating but hopefully profitable if we get it right.