Renewed interest in silver stocks last week propelled the shares of silver producer First Majestic Silver Corp. (FR.TO) to a 29.6% gain, driving it up 87 spots in the SIA S&P/TSX Composite Index Report over the week to 5th place near the top of the Green Favored Zone.
A major breakout is underway in as shares gapped up through $20.00 last week and broke through the top of a $12.50 to $19.00 trading channel on high volume, indicating a surge in investor interest. With a new upleg underway, the shares have carried on up toward $23.00.
Based on measured moves, next potential upside resistance tests appear near $25.50 and then $32.00, with potential round number tests near $27.50 and $30.00 in between. Initial support moves up toward $21.50 from $20.00
An accumulation trend in First Majestic Silver Corp. (FR.TO) shares has accelerated in recent days with the shares driving up off of a successful retest of $15.00 support, completing a bullish Double Top, clearing their July high and regaining the $20.00 round number on its way toward $23.00.
Next potential upside resistance on trend appears near $25.85 based on a horizontal count, then $30.90 where vertical and horizontal counts converge. Initial support appears near $21.20 based on a 3-box reversal.
With a perfect SMAX score of 10, FR.TO is exhibiting near-term strength against the asset classes.
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