Impact Silver Corp Line Chart

Impact Silver Daily Line Chart

In my previous article I did on Orko Silver I already highlighted the fact that most silver and gold miners have been losing some of their gains of the past few months and most of the percentages are around 30%with some ones even losing as much as 50%. When gold and silver drops the mines are sure to follow. Nothing to strange about that and most investors investing on the venture are well aware of this fact. This however does not change the longer term view and most fundamentally strong mining companies will quickly regain those losses.

When I do the math on Impact with reaching a high around $1.74 and hitting that low of $1.11Impact Silver lost about 36% which is quite a bit. No wonder someone decided to sell at a low and of course someone else was buying. Lucky buyer is what I reckon!

From the chart you can clearly see the support and resistance area around $1.28 – $1.30.In early January 2010 and again in May 2010 this area still was acting as a resistance which later in November 2010 was broken and then turned into a support area.

Its very important to keep those area’s in your mind when deciding to sell or buy. Always check and see if support holds and don’t go along with panic selling…especially when its immediately when the marke topens. Always wait a bit and see what happens before deciding to sell.

ADX Indicator

Description : The Average Directional Index can determine trend strength regardless of the market direction. This non-directional oscillator is based on a range of 1 to 100 (although movements over 60 are rare). If the line is under the 20 mark, the trend is considered to be weak. If the line is above the 40 mark, the trend is considered to be strong. The ADX line is built on the results of two separate technical indicators, the +DI (force of up-moves) and the –DI (force of the down-moves). The default for this study is 14 periods which takes into the consideration the measurements of the +DI and –DI for the last 14 periods.

You can clearly see the reverse in trend when early January the +DI was overtaken by the -DI.That would have been your first sign of trouble and perhaps a good time to exit and take profits for the short term or day traders. At the moment the ADX is just above 20 which technically means we are experiencing a down trend, mind you a weak one. -DI has reached a high of 37 after which it topped off and turned down again.Doesn’t mean the down is out of the stock, just means the trend could be reversing. Too early to tell right now.

Williams %R

On the Williams graph we are clearly in the oversold area and technically in a buy area. I wouldn’t recommend it at the moment but for longer term holders these prices right now are not all too pricey and a good bargain. At least that is what I recommended my partner who is now holding several thousand of Impact shares.

MACD

This one is clearly in negative territory and again confirms the downtrend. The histogram seems to be declining though. A few more trading days will tell us more if this turns back up again and if the support zone will hold and attract more buyers around these prices.

Impact Silver Corp Candle-stick Chart

Impact Silver Candle Chart

I’ve highlighted a couple oversold areas in times past which would have been ideal buy moments. As you can see again, right now we are at another such moment. Technically that is cause I don’t advise people buying when gold and silver are also experiencing a down trend. I just indicate things and what you do with them is your own prerogative of course. I’ve always been more directed towards the longer term shareholders than really day traders. Mind you, those latter ones can always benefit from a little T&A.

I’ve also highlighted again the time at which Impact released their news about their financing. Not unimportant to mention that they were oversubscribed and had to increase the financing from 12 to 15 million.Never a bad thing when something like that happens.

Impact Silver Corp 5-day Chart

Impact Silver 5-day Chart

The 5-day chart just to highlight the panic spike to a low of $1.11

To round up this article…just today they released a mine development and exploration summary. I suggest you read it and you can find it here.All in all, I’m bullish on Impact for the long haul. They might experience some down with the rest of the miners but that is normal business with gold and silver on a down. Before you invest, always do your own due diligence and you’ll do OK.