Today we're looking at First Majestic Silver (Ticker: AG). They are set to report earnings on 05/09 after hours. Here are some facts about the AG chart below.
- The yellow ovals indicate support levels that AG has launched off of on 3 different occasions. One was a breakout over resistance that is now support around 20.40.
- AG has throughout the year and is currently obeying fibonnaci fan trendlines
- The white oval shows the 50MA(blue) and 200MA(yellow) about to do a bullish crossover to the upside
- The most recent bounce was right at the 50-week MA as well. This bounce was met with higher than average volume.
- AG was up over 9% today!
I purchased this morning at 20.60 and caught nearly the entire move up, thank goodness! My first potential target first is 24.03 which is nearest resistance. After we clear resistance is the old high of 26.88, then next up is 33.71 which is from 2008. Once all these levels are cleared, ultimately we're aiming at new highs.
As it's the third bounce off support, I wouldn't wait for another pullback to support to enter but I would certainly add. In fact, i would consider purchasing a sizable position of the October 2011 $20 Strike at the money calls.
Here's the chart!
Edit: TOS platform had an invalid price point of 71.95, I have edited this post, so disregard the 71.95 target. I do however still expect new highs once resistance is cleared.