The silver sector made a historic bull run in 2025 and early 2026.
But the pullback in late January burned anyone who bought during the earlier few weeks.
As a result, some traders are too scared to touch this sector.
When in reality, the fun is just beginning…
Most people see a sector get crushed and assume it’s broken. There’s no need to pay attention any longer.
They’re wrong.
Right now, one stock is doing something the rest of the silver sector isn’t. While the broader group is limping along, this ticker is pushing in the opposite direction…
It just made new highs.
And when a stock separates itself from the herd like this, it tells us something very important.
I’m watching one price level in particular right now.
And I’m ready to act the moment the stock hits it.
The Stock: First Majestic Silver
First Majestic Silver Corp. (NYSE: AG) is a silver mining stock on a remarkable run right now.
The iShares Silver Trust (NYSE: SLV) is still well off its highs after cratering 34% in a single session on January 30.
The precious metals sector as a whole has been grinding through a difficult recovery.
And AG is ignoring all of it.
The stock just made new highs:
While silver itself is struggling after a major pullback, this miner is outperforming.
That kind of relative strength in a weak sector is one of the cleanest signals in trading.
New highs after a sector-wide selloff come with stretched price action. The tape gets extended. And extended stocks have a habit of snapping back.
I think a pullback to $25 looks likely.
That’s what I’m watching for.
Pullback Trade Setups
Here’s what most traders get wrong about relative strength plays…
They see a stock making new highs and either chase it immediately or ignore it entirely because the related sector looks ugly.
Both are mistakes.
The disciplined move is to wait. Let the stock exhaust the buyers who pushed it to new highs. Then ride the pullback using Put contracts.
I’ve been doing this across the precious metals sector for weeks now.
The Bigger Picture on Silver
I know some of you are frustrated with this sector. And rightly so.
SLV showed us it can drop more than 30% in a single day.
Those kinds of moves rattle people. They make traders second-guess every setup, every alert, every thesis.
But if you learn to recognize these setups, you can ride them instead of running from them.
The volatility that caused SLV to crater in a single session hasn’t evaporated. It seeps into related stocks, related sectors, and related trade setups.
AG is my top watch right now. I posted the alert I sent out on February 23 below:
I think it can pull back to the $25 level. And I’m looking for entries that show the stock is exhausted.
Stay Street Smart,
Jeff Zananiri
*Past performance does not indicate future results, Not typical.
