Silver stocks nearing support (AG, EXK, MVG, SLV)
They are First Majestic Silver (AG), Endeavour Silver (EXK) and MAG Silver Corp (MVG).
First lets take a look at the iShares Silver Trust (SLV) Chart. Note the Double Bottom shown in the chart - Travolta would be all over that.
Seriously though, Silver is nearing a point where it's going to either break out to the upside or to the downside, and we think it's going to be an explosive move either way. Silver has major support at $26, so if shares close below $26 it's pretty easy to manage risk and bail on the trade. However, beware of the head-fake dip below $26 as seen right around New Year's this year. In other words, wait for price to confirm a move below that level before selling.
If you don't want to mess around with individual miners, then go for the SLV or the Proshares Ultra Silver (AGQ). But if you want to take a chance with the miners, these 3 charts have decent looking setups.
First Majestic Silver (AG): Note the support line in blue on the chart, right at $14 a share. Shares could rebound $16+ on a silver recovery here.
Over the past 12 months First Majestic Silver Corp (AG) shares have traded between $12.12 and its 52-week high of $25.56. First Majestic Silver Corp shares are now trading with a P/E Ratio of 34.4 and EPS of 0.43.
Endeavour Silver (EXK): Has a similar blue support line right around $7.50. Might want to add this one to the radar and wait a little longer on this one, but a decent setup with the possibility of going to at least $10 if Silver rallies.
Over the past 12 months Endeavour Silver Corp (EXK) shares have traded between $7.25 and its 52-week high of $13.1. Endeavour Silver Corp shares are now trading with a P/E Ratio of 23.8 and EPS of 0.36.
MAG Silver (MVG): Very near to support around $7.15 with $9 within it's reach to the upside.
Over the past 12 months MAG Silver Corp (MVG) shares have traded between $5.95 and its 52-week high of $11.96. MAG Silver Corp shares are now trading with a P/E Ratio of 0 and EPS of -0.13.
Mastery Bottom Line:
Again, manager your risk by keeping an eye on Spot Silver prices for signs of dropping below $26. Place your stops about .50 below support areas and get out if the trade goes the wrong way.
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