First Majestic Silver Corp Silver Long Trade Idea

Mo · 2025-06-05T16:28:32.410482Z

$FR broke out above the 200-week SMA today with massive buying volume. Here is a possible trading idea to bet on a continuation of the silver rally with this mining stock. This is not investment advice and is merely my personal opinion and trading idea. Everyone must make their own investment decisions and assess the associated risk themselves. Trading in shares, especially in the commodities sector, can be subject to high fluctuations in value. 👉 Please DYOR (Do Your Own Research)! 🔍 Technical setup: Breakout above the 200-week SMA (white line) Volume support at a high level Horizontal level (~6.50-7.00 USD) was overcome with momentum Volume profile shows high interest in this zone → former resistance = potential new support 📈 Trade idea (swing trade on a weekly basis): 🟢 Entry Current price (~ USD 8.15) conceivable after breakout, but aggressive. Conservative: Wait for a setback to the breakout level ~ USD 7.20-7.50 (pullback to SMA200 or horizontal zone) 🟡 Stop loss Below the breakout zone: ~6.20-6.50 USDdepending on risk appetite and position size Alternatively: below the last weekly lows 🟢 Target zones (take profit) Short-term (~10.50-11.00 USD): Last swing high range (2022/2023) Medium/long-term (~13.00-15.00 USD): Consolidation zone from 2021 Bull case (~19.00-21.00 USD): Breakout from multi-year range ⚖️ Risk-reward ratio (CRV) Example at entry 7.50 USD: SL at USD 6.20 (risk: USD 1.30) TP1 at USD 11.00 (opportunity: USD 3.50) → CRV: approx. 2.7:1 📌 Notes: AG is a very volatile silver share, reacts strongly to the silver price. Look at the silver future (XAG/USD) - a parallel breakout there increases the validity. For speculative trades, always adjust the position size to the risk.

$FR (-0.96%)
broke out above the 200-week SMA today with massive buying volume.

Here is a possible trading idea to bet on a continuation of the silver rally with this mining stock.

This is not investment advice and is merely my personal opinion and trading idea. Everyone must make their own investment decisions and assess the associated risk themselves.

Trading in shares, especially in the commodities sector, can be subject to high fluctuations in value.

👉 Please DYOR (Do Your Own Research)!

🔍 Technical setup:

Breakout above the 200-week SMA (white line)
Volume support at a high level
Horizontal level (~6.50-7.00 USD) was overcome with momentum
Volume profile shows high interest in this zone → former resistance = potential new support

📈 Trade idea (swing trade on a weekly basis):

🟢 Entry

Current price (~ USD 8.15) conceivable after breakout, but aggressive.
Conservative: Wait for a setback to the breakout level ~ USD 7.20-7.50 (pullback to SMA200 or horizontal zone)

🟡 Stop loss

Below the breakout zone:
~6.20-6.50 USDdepending on risk appetite and position size
Alternatively: below the last weekly lows

🟢 Target zones (take profit)

Short-term (~10.50-11.00 USD): Last swing high range (2022/2023)

Medium/long-term (~13.00-15.00 USD): Consolidation zone from 2021

Bull case (~19.00-21.00 USD): Breakout from multi-year range

⚖️ Risk-reward ratio (CRV)

Example at entry 7.50 USD:

SL at USD 6.20 (risk: USD 1.30)
TP1 at USD 11.00 (opportunity: USD 3.50)
→ CRV: approx. 2.7:1

📌 Notes:

AG is a very volatile silver share, reacts strongly to the silver price.
Look at the silver future (XAG/USD) - a parallel breakout there increases the validity.
For speculative trades, always adjust the position size to the risk.

Epi@Epi

Thanks for the neat trade presentation!
What do you see as the advantage over $3LSI?

•

Mo@BigMo

@Epi With pleasure!
A continuation of the silver rally is practically a prerequisite for this trade to work.
I see the advantage in the specific technical setup of this stock.
Also, silver is still about 15% away from its 2011 high, while $FR is 220% away 😁
In short: more leverage! (Even more than $3LSI)

@BigMo Could well be. But that presupposes that FR reaches the ATH for silver itself. It didn't even work with the gold mines. I even believe that a synthetic $3LSI is just as far below the ATH as the silver mines.

Otherwise, of course, the companies have a number of problems that have little to do with the metal price: Energy prices, skills shortages, environmental movements, political uncertainties.
Since I've gotten a bit more involved in the matter, I prefer to bet directly on metal.
But as the saying goes? The tide lifts all boats. 😅

Yes, the risk is naturally high with such unprofitable holdings.
I trade here strictly according to the chart technique and not according to fundamental criteria.
The bottom formation and the very high buying volume convince me 😬
If we see another setback towards the 200-week SMA, I'll go for it 🙏

First Majestic Silver Corp - Silver Long Trade Idea