Friday, April 25, 2014

Silver Forecast & Silver Miners Prediction

Silver Forecast: Last month Ross Clark and I had a long discussion about where we forecast silver price to be in 2014. Interestingly enough, we both has a similar prediction. Both of us have been watching silver like a hawk because historically the more silver lags and underperforms that of gold, the more bullish our silver forecast was in the long run.
The point of this article is to make you aware of a possible major breakdown in the US dollar index and to provide you with a silver forecast. If the dollar chart does in fact break down then we will see the Euro rally and see commodity based currencies like the Canadian dollar, and Aussie dollar rally. This would also be bullish for commodities in general.
The US dollar index is clearly showing a topping pattern which if broken will trigger a waterfall sell off in price. (more)

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Pacira Pharmaceuticals Inc (NASDAQ: PCRX)

Pacira Pharmaceuticals, Inc. develops, commercializes, and manufactures pharmaceutical products primarily for use in hospitals and ambulatory surgery centers worldwide. It develops pharmaceutical products based on its proprietary DepoFoam drug delivery technology. The company commercializes EXPAREL, a liposome injection of bupivacaine, an amide-type local anesthetic indicated for administration into the surgical site to produce postsurgical analgesia; and DepoCyt(e), a liposomal formulation of the chemotherapeutic agent cytarabine indicated for the intrathecal treatment of lymphomatous meningitis, a cancer of the immune system. Its product pipeline comprise EXPAREL that has completed Phase III clinical trials for postsurgical analgesia-nerve block administration; DepoNSAID, which is in preclinical trials for the relief of acute pain; and DepoMethotrexate, an oncology preclinical candidate, as well as Bupivacaine Liposome Injectable Suspension for veterinary postsurgical analgesia.
To review Pacira’s stock, please take a look at the 1-year chart of PCRX (Pacira Pharmaceuticals, Inc.) below with my added notations:
1-year chart of PCRX (Pacira Pharmaceuticals, Inc.)
PCRX had formed a key level of support at $60.00 (green) over the last (4) months. In addition, the stock created a down trending resistance starting from the end of February (red). These two lines combined had PCRX stuck trading within a common chart pattern known as a descending triangle.
At some point, the stock had to break support or break its string of lower highs, and yesterday the stock broke through resistance. The prior level of $70 (blue) could be a potential support now.

The Tale of the Tape: PCRX formed a descending triangle pattern. A long trade could be made on a pullback to $70 with a stop placed below that level. A break back below $70 would set up a potential short trade.
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Chart of the Day - Warren Resources (WRES)

The Chart of the Day is Warren Resources (WRES). I found the stock by sorting today's New High List for the best technical buy signals then used to Flipchart feature to review the charts. Since the Trend Spotter signaled a buy on 1/28 the stock gained 61.63%.

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Advanced Micro Devices (NYSE: AMD) Stock Could Surge 45% in the Next 90 Days

Buying stocks that have fallen on hard times, or just out of Wall Street's favor, is a time-honored way to capture outsized returns. Price does not always reflect the actual value of a company, and finding these disconnects is one key to successful stock picking.
There are several ways to locate such stocks. The traditional way is to crunch the fundamentals to determine innate value. While this strategy can work, I consider it incomplete because it fails to consider the future. In other words, it's just a snapshot of now. It doesn't take into consideration the likelihood of the company's future plans adding value and lifting the stock price.  (more)

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Gold & Silver Stocks Begin Oversold Bounce

The bottoming process for gold and silver shares has been arduous as they’ve oscillated back and forth for almost a year. We noted a month ago that the failed breakout in March (  was strong evidence that an interim top was in place. Heading into this week it looked like the miners would fall further before finding support. However, over the past two days the sector clearly reversed its short-term course. For now this appears to be a rebound from an oversold bounce.
We plot GDX, GDXJ and SIL in the chart below. As of Monday’s low, the miners were very oversold in a small space of time. From recent highs GDX was down 18%, GDXJ 27% and SIL 21%. Thus the miners were ripe for a bounce. The bullish reversal on Monday coupled with confirmation on Tuesday signals that a rebound is underway. The initial upside targets are the open gaps from six days ago and the 50-day moving averages.
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