First Majestic Silver Corp. (Friday’s close $15.39) stayed between $6 and $11 from 2017 to 2019 (dashed lines). It had a breakout from this large base and reached a high of $16.50 in mid-2019 (A), dipped temporarily below its 40-week Moving Average (40wMA – B) in March, but then quickly resumed the up-trend to a new four-year high (C). At this point, First Majestic Silver became overbought and started a minor correction. There is good support near ±$13.00; only a sustained decline below $12.50-13.00 would reverse the current rising trend (solid line). Point & Figure measurements provide targets of $21 and $23. Higher targets are visible.
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Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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