The breakdown of the support could lead to a further decline.
Regarding company’s fundamentals, we can note their major weaknesses. The company is overvalued with a PER for 2013 of 22.5x. Otherwise analysts have, since the beginning of the year, downgraded their forecasts for earnings per share and revenue.
Technically, prices are close to a turning point : in fact, the breakdown of the USD 13.1 support would be a strong sell signal for investors. The break of this level would become gloomier the future of the stock.
Therefore, investors can take a short position after the breakdown of the support in closing price. The price target is set at USD 12.2. A stop loss order will be placed above the USD 13.2, threshold that would invalidate the strategy.
Coeur Mining, Inc. is a precious metals producer. The Company has four wholly owned operations: the Palmarejo gold-silver complex, the Rochester silver-gold mine, the Kensington gold mine and the Wharf gold mine. The Palmarejo gold-silver complex is located approximately 260 miles southwest of Chihuahua, in the state of Chihuahua in Northern Mexico. The Rochester open pit heap leach silver-gold mine is located in northwestern Nevada, approximately 13 miles northeast of the city of Lovelock. The Kensington underground gold mine and associated milling facilities are located on the east side of the Lynn Canal about 45 miles north-northwest of Juneau, Alaska. The Wharf mine is located in the northern Black Hills of western South Dakota, approximately four miles southwest of the city of Lead, South Dakota. In addition, the Company wholly owns the Silvertip silver-zinc-lead exploration project in British Columbia. The Silvertip mine covers an area of approximately 40,904 hectares.