Due to today’s pre-market quick downswing in silver, the white metal moved to our stop-loss level, so the position was closed automatically. However, this didn’t change the outlook, especially in light of Friday’s very strong performance of mining stocks. Consequently, it seems that re-entering the positions with new stop-loss levels is justified at this time from the risk to reward point of view.
The new stop-loss level for silver is $15.57 and the new stop-loss level for the USLV ETF is $8.47.
If the position was not closed automatically, we suggest lowering the stop-loss levels anyway. The long positions in gold and mining stocks remain unchanged.
On a side note, days like this show why it’s a good idea to diversify between positions in more than just one asset - while silver moved lower, mining stocks’ rally that we saw on Friday brought significant profits.
As always, we’ll keep you - our subscribers - informed.
Przemyslaw Radomski, CFA
Founder, Editor-in-chief, Gold & Silver Fund Manager