Pattern Play: First Majestic Silver

Market chart showing uptrend

First Majestic Silver (AG), a mining company focused on silver production, broke out to the upside of a descending wedge pattern on Monday, September 14th. The breakout was confirmed by price closing above the upper trendline. The MACD line has just crossed above the signal line, a bullish indicator. A wedge pattern is considered to be a continuation pattern and First Majestic has been in an uptrend since mid-March. First Majestic's stock price will likely resume its uptrend and grind towards its 2020 peak of about 14.50. If price manages to breakout above 14.50, its next stop would be 16.80, a level last reached in mid-2016. As long as price does not close below the upper trendline of the wedge pattern the bias should remain bullish. If price does close below the upper trendline of the pattern, then there is a chance that price could bounce off of the 10.90 support level. If price falls below 10.90, it would be a bearish signal and price could fall further to the 8.90 support level.


Market chart showing performance of First Majestic Silver corp. Published September 2020 by FOREX.com

Source: GAIN Capital, TradingView
Related tags: Equities Trade

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