Our silver stocks forecast was pretty straightforward in predicting a 2-fold to 3-fold rise in 2019. The pre-requisite as said is a break above 28 points in SIL ETF (SIL) combined with our silver price prediction as well as gold price prediction come true. Silver stocks in particular are just 6 pct away from becoming one of the TOP 3 investing opportunities of 2019.
We said that once a breakout in silver stocks takes place that silver miners are known to rise very fast and in a very aggressive fashion. “As of the moment they become bullish they can easily rise 2-fold to 3-fold in ‘no time’,” is what we wrote in our silver stocks forecast.
The weekly chart of silver miners looks gorgeous.
Note how the breakout level is now 28 points. This is just 6 pct below current price levels at the time of writing.
We did annotate the small rise that is required before reaching the breakout point in green on below chart.
Note as well how silver stocks ar now in the upper band of their falling channel, and are pushing for a breakout. They have never traded in this area since they peaked in the summer of 2016.
We believe it is a matter of ‘when’, not ‘if’, they break out somewhere in 2019.
Our favorite silver miner First Majestic Silver (AG) broke out in the meantime!
This is perfectly reasonable because of the reasons we outlined in our First Majestic Silver stock forecast.
Note the breakout process in the making in red in below chart. We want to see 3 consecutive weeks (Friday closing) above $6.2 for a final confirmation. As soon as this materializes our next price target for First Majestic Silver is in the $17 area, an almost 3-fold increase.