We made our point about the enormous upside potential of First Majestic Silver (AG) already many times in the past. The current chart setup of First Majestic Silver is a pressure cooker. After 20 months of flat trading in a trading range it seems about time to breakout. The chart suggests that a big move is underway, and it favors an upside breakout which may bring this stock 2 to 3 times higher in 2019. This would confirm our long awaited First Majestic Silver forecast 2019.
InvestingHaven’s research team reviews every month between 500 and 1000 sector (!) charts on their monthly timeframe. Note we did not say individual stock charts, we said sector charts. The monthly timeframe is crucial because that’s where the dominant long term trends are visible.
In all honesty the monthly chart for silver miners (SIL ETF) is one with the most enticing potential. We would qualify this in the top 5 among many hundreds of sectors. You read this correctly!
Especially First Majestic Silver will do exceptionally well if and when silver miners break out, ideally combined with a bullish silver price. And they are very close to a breakout it is less than 10 pct removed from a giant breakout point. A small push in the price of silver to turn $15.75 into support would be the final trigger!
We refer to the following 2 articles published recently to read more detail about the points we made above.
If we turn our attention to the weekly chart of First Majestic Silver we see this pressure cooker effect we mentioned before. The falling channel after the giant rally 3 years ago refuses to continue its path lower. It is morphing into a consolidation, and presumably a breakout is in the underway.
Note how resistance at $6.6 is about to cross the resistance line of the channel. This price level of $6.6 has an above average value. A small push of 10 pct would bring First Majestic’s stock price to this point.
The upside potential is enormous. First target may be $10.5, the second and most bullish target is $17.