First Majestic Silver Corp (NYSE:AG) shares are slipping Monday as precious‑metal stocks pull back following silver’s retreat from record highs.
- First Majestic Silver stock is taking a hit today. Why is AG stock dropping?
What To Know: The iShares Silver Trust (AMEX:SLV) hit fresh all‑time highs in pre-market trading Monday as silver prices soared above $82 per ounce before retreating later in the session.
Silver’s recent surge has been fueled largely by a severe physical shortage in China, where a wave of retail buying has collided with already tight supply. UBS SDIC Silver Futures Fund LOF, China’s only pure silver fund, had to halt new subscriptions on Friday after its market price soared to more than a 60% premium over its underlying assets.
China’s move to restrict silver exports is adding to the tension, raising concerns that global supply chains could be disrupted and potentially drive prices even higher.
Analysts say the rally comes from structural deficits and strong industrial demand from solar, and EV manufacturing could push silver toward the $85 to $100 range.
Technical Analysis: First Majestic Silver Corp is currently showing a strong bullish setup, trading well above its key moving averages. The stock is positioned 4.9% above its 20-day SMA, 21.8% above its 50-day SMA, and a remarkable 74.1% above its 200-day SMA, indicating strong upward momentum.
The RSI is currently at 66.57, which is considered neutral but close to overbought territory. This suggests that while the stock has momentum, traders should be cautious of a potential pullback if the RSI crosses above 70.
MACD is above its signal line, indicating bullish momentum in the stock. This positive signal suggests that the current trend could continue, making it an attractive option for traders looking for upward movement.
Key support is at $14.50, while resistance is at $17.50. If the stock tests these levels, a break above resistance could signal further gains, while a drop below support might indicate a trend reversal.
Over the past year, AG has surged 213.17%, underscoring a powerful long‑term trend and highlighting the stock’s resilience and continued growth potential.
AG Price Action: First Majestic Silver shares were down 3.79% at $16.75 at the time of publication on Monday. The stock is trading near its 52-week high of $17.91, according to Benzinga Pro.
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