Home > Stock Charts > McEwen Mining (MUX) Hits Buy Trigger

McEwen Mining (MUX) Hits Buy Trigger

I have been following McEwen Mining (MUX) the past few days on the blog. Today it just hit my buy trigger closing at $4.44, two cents above the 21-day exponential moving price average of $4.42. I will be looking to purchase Monday morning.

MUX Price Chart 3-30-12

MUX hits buy trigger

MUX has been in a long-term uptrend as you can see from the 5-year chart that follows.

More recently, during the past year, MUX has been staying within the bounds of an ascending Andrew’s Pitchfork. Each time the price has neared the bottom of the pitchfork, it has bounced either on the bottom of the pitchfork, or off the white sell trigger line.

The detrended 21-day exponential price oscillator had dropped below the bottom of the channel, but has now just climbed back within it.

Overall, I am anticipating MUX to continue to move upward in price.

MUX 5-year price chart

MUX, long-term, is in an upward price trend

As stated previously, MUX has been in a long-term upward price trend as seen in the chart to the left. It had reached a seriously overbought level as evidenced by the 21-day exponential moving price average remaining outside the top of its channel for a prolonged period of time.

However, more recently MUX has re-entered the price channel. For purposes of determining whether to purchase MUX or not the upper chart covering the past year is more relevant – as far as the buy trigger, than the longer-term chart.

Overhead price resistance is visible around the white lines at approximately $6.00 and $7.50.

Mux price chart

A different chart perspective on MUX price

The next chart (in black and white) provides a slightly different perspective on MUX.

It shows that MUX temporarily dipped below a sell trigger, but then crossed above that trigger and has now-re-entered the ascending Andrew’s Pitchfork. The price also managed to break above a downtrend that had been in place before March began.

My current strategy is to purchase MUX with a limit order of $4.50 per share. I will look to sell should MUX close below the 21-day moving average. Should this strategy change I will post an update.

MUX Chart

MUX data by YCharts

Disclaimer: The above is for informational purposes only. This should not be considered investment advice. Any investment decisions are your own and should be made after conducting your own independent research and / or in consultation with a professional investment advisor.

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