Moving average analysis adds another view to estimate good moments to take some profits.

IF First majestic was to sky rocket to a 60% stretch from 12 month moving average… the if you bought now (8% from MA)… that would net you a 52% move.

That is your reward.

Now, where is your sell-stop.. what’s your risk? I’s say a close 10-12% below now would land you below the 12 month MA and arc.. and signal an exit.

So that gives you a 5:1 reward vs risk… not bad!