Although still above this insanely steep & over-extended uptrend line, I have enough confidence that AG (First Majestic Silver Corp) is poised for a drop of at least 20% that I will go ahead & add it AG an Active Short Trade here in anticipation of a break down & move to the 8.70 area. 8.76 is the sole target at this time with a suggested stop over 11.80.
AG daily May 20th
A couple of points to note on this trade: First of all, shorting a stock that is still within a bearish pattern or above a key support level such as this uptrend line makes this an aggressive trade as does the fact AG has a history of very large price swings. As such, less aggressive traders might prefer to wait for a confirmed breakdown before establishing a position or pass on AG altogether. Also note that AG is a silver mining stock as well as a component of the active short trade on NUGT/GDX. As such, make sure to factor that in if already short NUGT or GDX as you will be increasing exposure to the same sector as well as the same stock.