One of the most insane declines this week was in the price of silver. Needless to say we may need to revise our silver price forecast. A once in a generation cataclysmic crash in global markets lead to crashing commodity prices, silver and crude oil being among the victims. But this also ‘smells’ opportunities. First Majestic Silver is now as cheap as in 2015 right at the breakout after hitting multi year lows.
The weekly chart of First Majestic Silver makes the point.
Below we can see the bullish reversal in 2015 which resulted in an historic rally in First Majestic Silver from the breakout at 4.20 to 20.00, in 6 months time.
Obviously a period of a bear market followed bringing its price back to below 5.00 USD.
Last June we signaled a breakout, and the start of a new bull market. However, this got stopped cold 3 weeks ago, in a way never seen before.
First Majestic Silver fell back to the breakout level of 2015, and bounced to the lows of 2018. We believe this is a bargain, not to go all in at this point but to accumulate some stock of this great company for the long term! Don’t expect fast returns, but once this stock goes up again (it might take a long time) …