Given that you are still long on GATO but considering taking some profits, selling a portion of your position if the price drops below $12.79 could be a prudent move. This level is close to a support zone, and if the price falls below it, it could indicate a potential short-term pullback. Taking profits at this level would allow you to lock in gains while still maintaining a position to capitalize on future upside, especially since you remain bullish on silver in the long term.
Head and Shoulders Pattern Analysis
Looking at the chart you provided, there does appear to be a potential **Head and Shoulders** pattern forming, which is a bearish signal. The pattern is characterized by three peaks: a higher peak in the middle (the "head") and two lower peaks on either side (the "shoulders"). Here's how it applies to your chart:
- **Left Shoulder:** Formed in late June, where the price peaked around $13.50 before pulling back.
- **Head:** The peak in mid-July, where the price reached above $14.50 before declining.
- **Right Shoulder:** The recent price movement towards $13.50, which could be forming the right shoulder.
If this pattern completes, with the price breaking below the "neckline" (which could be around $12.79 or slightly lower), it could indicate a further decline. This potential pattern, combined with the current hot market for silver, suggests it might be wise to take some profits and reassess your position.