Gediminas Jasionis
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Silvermex Resources Inc (TSE:SLX) (PINK:GGCRF) Losses Momentum

by Gediminas Jasionis Apr 25, 2011
3slx_chart.pngSilvermex Resources Inc (TSE:SLX) (PINK:GGCRF) started the trading week with a modest decline following the share price gains induced by the company's expectation to retain production rates constant in the first two quarters of 2011.

Share price ended up with a gain of 4% from the last couple trading sessions, generating somewhat higher than average trading volume. The news on stable production guidance usually shouldn't bring out a buying wave, but considering the difficult situation Silvermex was in not so long ago, the news are comforting.

Silvermex (previously Genco Resources Ltd.) had their revenues decline for the 4 years in a row prior to 2010. Some recovery was seen just before the business was acquired by Silvermex Resources Ltd.

6silvermex_logo.jpgThe recent stock price climb was the first sign of possible downtrend reversal, but SLX currently has more chances to submit into consolidation. Buying pressure wasn't very strong on Monday, but the price held pretty well. Traders could see further breakouts as the consensus reaction to the production guidance was clearly positive.

For day traders, the main support levels are at 70 - 71 cents. Breakout could occur around the closest resistance at 79 cents. But this level is also rather vague, thus it might not trigger buying at higher prices.

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