From about $15 in early 2008 (A) MAG Silver Corp. had a sharp decline to $3.50 (B), a rally to the falling 40-week moving average (40wMA) (C) and then a pullback toward $5 (D). In 2009, the 40wMA started to flatten and, most recently, the price started to move above this average (E). This price action suggests a bullish technical pattern known as a "W" formation (see dotted lines). The recent rise above $7.70 (E) confirms the bullish pattern and signals the start of a new major up-move. Only a decline below ±$6 would reverse the positive status.
Point and Figure measurements provide an initial target of $9. Higher targets are also visible.
Ron Meisels is a contributor to the www.NA-marketletter.com web site. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.
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