Since today’s guest commentary from Chuck Cohen talks about an impending boom in junior mining stocks, it might be a good time to look at the chart of Premium Exploration, an Idaho firm whose gold mine I visited in the summer of 2010. Everything about the company impressed me at the time, but Premium’s considerable strengths, including excellent management and promising core samples, have evidently been lost on investors since at least last April, when the stock peaked around 81 cents a share. It has fallen by 75% since, and, to speak bluntly, there is nothing especially encouraging in the technical picture at the moment.  Under the circumstances, you could say that Premium is a good company whose stock has been unjustly pounded nearly to death — and therefore an excellent mine canary to tell us when the junior explorers are really and truly ready to move.

In Premium’s case, it would take a pop above 0.3245, the second of two peaks whose breach to the upside would create a bullish impulse leg of  daily chart degree.  Accordingly, I’ve set a screen alert and will signal you in turn when there are signs of life. More immediately, with the recent breach of a minor midpoint support at 0.2673, the nearest logical place for a bullish turn would be from its ‘D’ sibling, 0.2143.  Failing that, the next technically logical stop on the way down would be at 0.1991, the Hidden Pivot midpoint of the larger pattern.  Stay tuned, since I’ll be monitoring this stock’s vital signs very closely.  Want to learn how to nail swing highs and lows precisely, and to manage trade risk yourself? Click here for information about the upcoming Hidden Pivot Webinar on November 16-17 and a $50 discount.