MAG Silver MAG-T rallied from $5.33 in 2020 to $31.21 in 2021 (A-B), reversed the trend in March 2021 when it declined below the 40-week Moving Average (40-wMA – C) and started a downtrend below a falling trending for about three years (dashed line). Earlier this year, MAG Silver rallied above the 40wMA, which started to curl upward, but the stock remained within a horizontal trading range mostly between $15.50 and $19.50 (dotted lines). The recent rise above this range signaled a breakout and the start of a new up-leg (D).
MAG Silver is currently in the midst of a minor correction for a better entry level ; only a sustained decline below the 40wMA (currently near $18) would be negative.
Point & Figure measurements provide targets of $26 and $29. Higher targets are visible.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com