First Majestic Silver Corp. (AG) Ready to Breakdown?

A descending triangle pattern has formed in the chart of First Majestic Silver Corp. (AG).  This is a bearish pattern and if the support level is surpassed, a breakdown is expected…

First Majestic Silver Corp. (AG) is a mining company focused on silver production. Its primary product is silver and other metals produced as part of the extraction process, such as gold, lead, and zinc, are considered as by-products.

A stock was popular in early March due to the rise in silver and increased interest from retail traders. The company has had success buying assets and recently made news with its deal to buy the Jerritt Canyon Mine. This transaction should make AG one of, if not, the top silver producer in North America.

As of the most recent quarter, AG had $266 million in cash. This may not sound like much, but compared to zero short-term debt, the company is in good shape. But both sales and earnings were down from the prior quarter.

The stock is trading at a high multiple with a trailing P/E of 144.09 and a forward P/E of 43.86. AG had shown bullish momentum at the beginning of the month, but has been trending down as of late.

Take a look at the 1-year chart of AG below with my added notations…

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