做多

First Majestic Silver AG - Rare Opportunity

已更新

First Majestic silver along with the rest of the mining stocks have been pummeled the last few weeks.. or months..er I mean years. It is my strong opinion that a rare opportunity has opened up in many of these stocks - historical.

These monthly candles really help depict the birds eye view necessary to spot the larger patterns and trend. AG has been forming a large wedge for many years and broke out a few years ago.. Price is now on the launchpad. It might be a slow rocket getting off the ground but it has a tremendous amount of fuel.

I'm going to give you a ratio to ponder. Then I'll give you another one later. GDX/SPX. I'm just looking at the gold miners index compared to the S&P500. Hard to imagine how far GDX will be moving in comparison to even return to 2011-2013 levels.

GDX take a look at the wavetrend (RSI stochastic indicator)..

I'm watching a momentum indicator on AG. This is a pretty big deal. AG weekly, DPMI goes back to 2008. What I'm seeing suggests AG momentum is likely to change direction here. It would certainly mean some green weekly and monthly candles going forward.. however you cannot dismiss divergences. It's possible we get a big rally for a while only to sell off again and create a bullish divergence...or it could just turn up and continue. Normally the largest moves in AG come toward the end of a cycle..and not the beginning. But what this suggests to me is a likely change in momentum from here