Winding up is all you can say about Endeavour Silver Corp. EXK. You can see what I'm talking about by looking at the chart action for the month of April. The shares exploded to $12.75, then fell all the way back to $10.50 from there they rallied $12.25 then fell down to $11.00. The result is a huge triangle that has formed above $10.00 and which has come to a very sharp point at $11.75 just 10 minutes before today's close.
Take another look at the same formation on the intra-day chart in the 15 minute time period below. Draw in your mind the straightest line you can across the above series of lower highs, $12.75, $12.25, $12.10, to todays close. $11. It's a downtrend. Now do the same for the series of higher lows at $10.50, $11.00. Notice the uptrend. So, whats going on in this well known chart formation is that the prices are being squeezed between the downtrend and the uptrend. Obviously both trends cannot stay intact and the situation is usually resolved explosively one way or the other. Which way will it break? I don't know, but which ever way it is will likely continue for some time to come.
I usually don't enter triangle formations, preferring to trade the break afterwards. You will miss the initial breakout move, but you also remove the guesswork. However we have been long 100 shares of EXK since $9.49 and are already in the thick of things. So, what do we do now?
Well we could just get out and wait for the break and then trade back into it. You might also consider doing the same with say 50 shares to protect your profits. But I will just stay long. I preferred to keep all my shares on when the stock was at $12.75 to taking profits so, I certainly wont take any here. In these days the best bet is to just stay with silver.
Keep your stops at $9.25.
I expect to be moving them up very soon.