Endeavour Silver Corp., a mid-cap silver mining company, focuses on the growth of its silver production, reserves, and resources in Mexico and Chile. The company has three producing silver mines in Mexico, the Guanacevi Mine in the state of Durango, and the Bolañitos and El Cubo Mines in the state of Guanajuato. It also holds interests in exploration projects in Mexico, including the Guadalupe Y Calvo project, Parral project, Arroyo Seco project, the San Sebastian project, Panuco project, and Lourdes project. The company was founded in 1981 and is headquartered in Vancouver, Canada.
Please take a look at the 1-year chart of EXK (Endeavour Silver Corporation) below with my added notations:
After trending lower for most of the year, EXK formed what appears to be a Double Bottom (red) price pattern. The pattern is as simple as it sounds: Bottoming, rallying up to a point, selling back off to a similar bottom, and then rallying back up again. As with any price pattern, a confirmation of the pattern is needed. EXK would confirm the pattern by breaking up through the $10 resistance (navy), which has also been an important level overall to the stock whenever it has been reached. As you can see, EXK confirmed the Double Bottom last week.
Keep in mind that simple is usually better. Had I never pointed out the Double Bottom pattern, one would still think this stock is moving higher if it simply broke through the $10 resistance level. In short, whether you noticed the pattern or not, the trade would still be the same: On the break above the key $10 level.
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