MAG Silver Corp. (Friday’s close $15.87) rallied from $8.78 to $23.32 (A-B), reversed the rising trend at the end of the year as it fell below its 40-week Moving Average (40wMA – C) and started a new down-trend (dashed line). The stock remained below the downward pressure of the falling trend-line from mid-2016 to the end of 2018.
MAG Silver started to build a bullish technical pattern in the form of an Inverse Head-and-Shoulder (solid lines), however, it is yet to break out above the neckline of this formation (dotted line). A sustained rise above $15.50-$16.00 would signal the breakout.
There is good support near ±$13; only a sustained decline below ±$12 would be negative.
A rise above $15.50-$16.00 would signal Point & Figure targets of $18 and $20. Potentially higher targets are visible.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com