Great Panther Silver stalks the price of silver

Oct 1st, 2010 – Comment

GPR is no longer in a sustained uptrend and until it is you have to be willing to find entry and exit points if you want to generate returns.


About the Author

Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.


Read the author's full profile.


Further Research

Read more about Precious Metals.


Hi Lou,

I have been holding 10,000 shares of GPR for about a year and the news has been all good from every view except the price of the stock.

Thanks,

Ron

Hi Ron,

I last covered Great Panther Silver Ltd. (GPR TSX) on December 14, 2009 for Jim, the charts were indicating that there were more profits to be harvested. The stock did run to a high for 2010 in January but pulled back and was pretty much range bound for most of the year. It did get a lift as we came into late August but lets consult the charts for more particulars.

The three year chart illustrates the rise from $0.80 in December of 2009 to the high for 2010 in January at just over $1.10. From there GPR pulled all the way back to support at $0.70 where in August it bounced to $1.02.

The chart also tells the story of a stock that rode a great uptrend from a rock bottom. Like all things in life no trend lasts forever and GPR ran out of steam, pulled back, and has now started another run to the upside.

As we can see from the chart for silver, as the commodity goes so goes GPR! Silver also broke its uptrend in early 2010 and then consolidated. The current spike in silver is clearly behind the move in GPR.

The MACD on the six month chart signalled a change in direction in early August which saw the stock move from $0.70 to a $1.02. The RSI is indicating that the stock is  currently overbought  and the MACD is also suggesting that the stock has gotten ahead of itself for the moment.

The longer term study of GPR provides a lesson in asset management. When managing a stock portfolio you must capture profits when they are available because they are not always available. GPR is no longer in a sustained uptrend and until it is you have to be willing to find entry and exit points if you want to generate returns.

Happy Capitalism!

Categories: Precious Metals
Content © Relentless Economics - Charts courtesy Stockcharts.com - Employees Entrance - Optimization Media