We have covered First Majestic Silver (AG) extensively especially in the last 6 months. When we wrote our First Majestic Silver stock forecast we said “our forecast for 2019 based on the weekly chart is $7 as a base case and $17 as the bullish case.” With today’s convincing breakout in gold (GOLD) and silver (SILVER), and with First Majestic Silver rising above $7, it is clear that this silver stock is on its way to meet our bullish forecast. Note that we tipped this many months ago in our top investing opportunities 2019 section.
We covered First Majestic Silver extensively this year. This is the sequence of articles we published:
As said many times it is imperative to take a top-down approach: first the big picture and sector viewpoint, followed by the lower timeframes like the daily chart.
In this article we include the daily First Majestic Silver chart which features the recent 3 year bear market.
The 2 previous breakout attempts failed, as shown on the chart. This one is clearly different, not only because of its power but also because it comes with the leading indicator breakout (which is gold).
After reviewing many hundreds of precious metals stock charts it became clear (last year) that First Majestic Silver has the most attractive setup. As soon as precious metals would turn bullish it would be a safe though leveraged bet to enter First Majestic Silver.
We believe this not only from a chart perspective but also from a fundamental perspective. This company has simply been doing the right thing, and once conditions become favorable there is a huge reward for investors with patience.
The points mentioned above are the reasons why we believe this stock is about to double. In a way that’s typical for highly volatile markets (like precious metals stocks) we expect to see a very fast and violent move upward. So waiting to see a confirmation does not make sense given the current set of circumstances.
Smart investors are in, and start working on their exit plan now, as per our investing method.