Green light for silver miners. Our forecast that silver miners (SIL) would become one of the TOP 3 investing opportunities of 2019 is in the process of being confirmed. Today, we get a confirmation that First Majestic Silver (AG), our favorite silver stock, is confirming its breakout. This silver stock is about to double, our First Majestic Silver stock forecast is underway.
This article focuses only on the chart, not on fundamentals. For fundamental analysis we refer to previous article we published on First Majestic Silver: First Majestic Silver: Fireworks In The Making In 2019
Note that we have been tracking the silver miner sector in general, and First Majestic Silver in particular, very closely in 2019. That’s not to annoy followers with the same content over and over again. On the contrary, it is meant to stress the importance of this opportunity!
These were our 2 most important updates in 2019:
- First Majestic Silver At The Verge Of A Giant Breakout
- First Majestic Silver: Time For A Big Move After 20 Flat Months
What’s interesting now is that price action of both the price of silver (SILVER) as well as First Majestic Silver in the last 4 weeks.
- Silver peaked mid-Feb at $16.25, retraced to $15.00, only to rise back today to $15.50.
- First Majestic Silver peaked mid-Feb at $7.05, retraced to $6.25, only to rise back today to $7.00.
This is relative strength. If silver miners outperform, in relative terms, the price of silver, it means something powerful is brewing!
There is more evidence. Today’s closing will be around the $7.00 mark. This is day 4 on which First Majestic Silver is closing above $6.50, its breakout point.
Why is this important?
Because 3 to 5 consecutive closes above the breakout point of $6.50 comes as close as possible to a confirmation of a breakout.
The chart below makes this point.
The chart below suggests that First Majestic Silver will double in 2019. Best case it will rise to the $16-$17 area in a blow-off top alike fashion.