The Stock Price Will Soon Be Double-Digit Again

The six-month chart of the Canadian silver producer First Majestic Silver shows a peak in autumn at over 11 Canadian dollars – followed by a decline of about a third of its value down to the massive bottom in the first months of the new year (at around 7.4 CAD). Two (blue) downward trend lines can be derived – after overcoming the steeper line, the 100-day moving average was able to surpass the 200-day moving average again, generating a medium-term buy signal. A week ago, the price turned completely and was able to quickly cut through the flatter blue line and both averages upwards – currently, it’s just a small step away from the stock price being double-digit again.

Both average lines run roughly horizontally and are to be considered neutral from this perspective.

Two weeks ago, the MACD indicator generated a continuing buy signal (the blue line crosses the red line upwards). Correspondingly, in the more complex DMI indicator – here the further rising green line crosses the further falling red line upwards. In addition, the blue line indicating trend strength continues to rise. Apart from a brief interlude in early February, the trend confirmer managed to sustainably exceed the neutral mark of 100 for the first time since November and to trade in positive territory. Fittingly, a renewed inflow of capital into the stock can be observed since March (course in the green zone), which is currently still increasing. Since the absolute low point at the end of January, the Overbought/Oversold indicator has been steadily rising and recently reached a value of 1.7, close to 2.0 – a level considered overbought. However, this was quickly reduced again – with a current value of 1.0, the indicator is seen as positive but not overheated between the neutral zero and 2.0.

Source: Comdirect