Buy MAG Silver Here?

After a secondary offering was announced this week, MAG Silver dropped about 11%. While I will likely wait for two events to pass before I add to my metals and miners, those being the end of the Chinese New Year, and the FOMC announcement, both coming next Wednesday, February 1. I will put MAG on my list of buy candidates, though friends, family, and myself already own some by virtue of being invested in the SILJ etf where the stock is the third largest holding with roughly 7% of the fund’s money invested in MAG. Since its a fairly heavy weighting in the fund, I don’t feel like I have to buy some right this second, though the following chart caught my eye.

I remind readers that my charting skills are not perfect, and creating trend lines can be highly subjective. Nevertheless, I like the chart and have no problem buying it in this general area. I am only waiting because I already am involved via the 7% weighting in SILJ, and we have two potential catalysts between now and next Wednesday that could keep pressure on the metals and miners. The group has had a substantial run, so it will not surprise me if people use the next few days as a reason to do some selling, as I did with various holdings earlier in the week. I trimmed roughly 15% of my holdings already, but have no plans to sell more, in fact I am getting my buy list ready to add back the proceeds into miners, as my long term signals have not given a sell signal yet, they aren’t even close. I believe there is a lot more upside to come.