tangman
Long

AG: Resistance becoming support

NYSE:AG   FIRST MAJESTIC SILVER CORP
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AG fell below $6 recently, where it then bottomed into a (loosely) cup & handle pattern with $6 as resistance.

Recently, it broke above the $6 and, in the last two days, backtested the resistance, which now could be support. It also happens to be just above the still falling 50 DMA.

Of note is that on Feb 28, AG missed earnings . The next day, the stock rallied strongly. This could be a sign that sellers are completely exhausted.

I believe it is low risk here with a stop under $6, with a lot of upside potential if the precious metals bull resumes and the US Dollar weakens. Which, looks to be almost certain given the fundamental happenings today.
I'd just call that a double bottom reversal myself. C&H... not so much.
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Is your target based on the measured move concept- top of cup minus base.. added to handle breakout?
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tangman skullytwenty13
Hi @skullytwenty13,

I don't have a target based on the cup & handle, I'm trying to spot & catch a longer term trend change. Here I think miners are showing relative strength today and yesterday. When gold & silver bottom, or break out of their triangle, I want to be well positioned.
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