Coeur d'Alene Mines
Another stock that's just starting to form a breakout chart pattern is silver player Coeur d'Alene Mines (CDE - Get Report), a primary silver producer with gold production and has assets located in the U.S., Mexico, Bolivia, Argentina and Australia. This stock hasn't done much so far in 2011, with shares up just 2.9%.
If you take a look at the chart for Coeur d'Alene Mines, you'll see that this stock has started to break out above two key overhead resistance levels. The first level is at $26 a share, and the second level is at $27.90 a share. With the stock currently up over 7% at $28 a share, both of those levels have been taken out to the upside. What traders should watch for now is a close today on heavy volume. Look for volume that's close to or above the three-month average action of 3.4 million shares.
A strong volume close with the stock up sharply could be a precursor of more gains to come for CDE. This breakout above $27.90 could mean that CDE is setting up to trend back towards its next significant overhead resistance level at $33.10 a share, or possibly even higher.One could be a buyer of this stock on any weakness and simply stop out of the trade if CDE drops below its 200-day moving average of $26.34 on heavy volume. I would add to any long position if CDE takes out $33.10 since it could mean a run towards its 52-week high of $37.59 is in the cards.