Silver Standard Resources
Mid-cap silver stock Silver Standard Resources (SSRI - Get Report) has been a major beneficiary of silver's increase in price in the last 12 months. Shares of the miner have rallied more than 65% in the last year, underperforming the metal but grossly outperforming the equity market over that same period.
Now a bullish setup in Silver Standard suggests that higher prices could be on the way.
That's thanks to the inverse head and shoulders pattern that's forming in shares of SSRI. Simply put, a head and shoulders pattern is a pattern characterized by a major trough (inverse head) with two smaller troughs on either side (shoulders). When shares move above the formation's upside resistance level -- known as its neckline -- buyers have a trigger to buy shares.Statistically, the inverse head-and-shoulders is a significant pattern that can result in successful trades - but the key is risk management. That means not entering the trade until a confirmed break above the neckline takes place. It also means keeping a tight protective stop as a contingency for failure.
Silver Standard showed up on a list earlier this month of four metal and mining stocks with upside.