Pattern Play: First Majestic Silver

Bullish breakout from a descending wedge pattern.
First Majestic Silver (AG), a company focused on silver production, broke bent 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 taken into account 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 doesn’t 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’s an opportunity that price could bounce off of the ten .90 price . If price falls below 10.90, it might be a bearish signal and price could fall further to the 8.90 price .

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