First Majestic Silver: Once Market Darling, Not The Strongest Silver Miner Any Longer
A year ago we tipped First Majestic Silver as the most solid play on the precious metals surge. Between May and August followers made +70% profit with this call.
Today we find ourselves in a similar situation: precious metals are breaking out. This should not come as a surprise because we highlighted this in our updated (Corona crash inclusive) gold price prediction and silver forecast. Members of both our short term trade alerts as well as medium term investments got gold and silver trade suggestions. But is First Majestic Silver our top silver pick?
Let’s turn our attention to the First Majestic Silver chart to answer this question.
Below is the weekly chart on 5 years. The annotations are ours, obviously.
It is clear that the long term First Majestic Silver trend is in a giant reversal. After the huge surge in 2016 we witnessed a prolonged bear market. The subsequent move higher brought AG to the 11-12 area.
The Corona crash had a thorough impact on this silver miner. However, visibly, a recovery is now underway, as the critical level which we annotated with #1 is now in the process of being broken to the upside.
This stock is moving higher, but is this the most solid silver name out there?
First Majestic Silver has a short float ratio of more than 10%, not so great. Moreover, from a chart perspective, we identified a strong silver miner for our Momentum Investing portfolio, and we explained in our weekend update which one and why.
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