In my opinion:
Having entirely broken it's near-decade long downtrend (bright orange lines) Silver long term support is set (green lines) short term trend (red lines) indicate it will likely spike to the 20$ levels but expect a smack down - need to see how the big 8 traders will move i.e. JP Morgan et al as they have full control of the price through Comex. If they do push back we could be back down to green support circa 17.50-18$ but also probable to stay within midterm(brown/dark orange lines) resistance/support or even turn 20$ resistance into support. Also, more price manipulation in the form of QE4 (Repo, bond buybacks etc.) further inflates M2 supply and in turn equity markets thus pushing commodities and their sentiment down - this sort of short term pushback is expected. If neither of these happen the value will break ATH's in a few months, but Law of diminishing returns is in full swing and Silver will be in a firm Bull trend regardless of anything for the next few years (cumulative) and probably against pretty much any equity or commodity. I expect in the years to come it has the high probability potential to outperform even Gold.
Fundamental reasons for Silvers rise include demand growth exponentially every year since 2007 and no signs of slowing down. Meanwhile, production is not at the same rate so even a short spike in demand (say in Solar Panels or batteries from new "Green" legislation perhaps) could cause worldwide shortages and push to ATH in days. Last time we had a momentary shortage like this was when Silver peaked to circa 50$ in 2011 and shortly thereafter in 2013 began this downtrend that we've now broken.
Market sentiment is rising for silver but this is by no means its final stop, likeliness of breaking ATH's alongside Gold has probably never been higher so time to get in on the Long is now and hold tight. Short, medium or long-term AUG is a winner for me.
NB Primary Miners also worth looking at as supplementary divestment with even higher potential ROI's though far more speculative.
Having entirely broken it's near-decade long downtrend (bright orange lines) Silver long term support is set (green lines) short term trend (red lines) indicate it will likely spike to the 20$ levels but expect a smack down - need to see how the big 8 traders will move i.e. JP Morgan et al as they have full control of the price through Comex. If they do push back we could be back down to green support circa 17.50-18$ but also probable to stay within midterm(brown/dark orange lines) resistance/support or even turn 20$ resistance into support. Also, more price manipulation in the form of QE4 (Repo, bond buybacks etc.) further inflates M2 supply and in turn equity markets thus pushing commodities and their sentiment down - this sort of short term pushback is expected. If neither of these happen the value will break ATH's in a few months, but Law of diminishing returns is in full swing and Silver will be in a firm Bull trend regardless of anything for the next few years (cumulative) and probably against pretty much any equity or commodity. I expect in the years to come it has the high probability potential to outperform even Gold.
Fundamental reasons for Silvers rise include demand growth exponentially every year since 2007 and no signs of slowing down. Meanwhile, production is not at the same rate so even a short spike in demand (say in Solar Panels or batteries from new "Green" legislation perhaps) could cause worldwide shortages and push to ATH in days. Last time we had a momentary shortage like this was when Silver peaked to circa 50$ in 2011 and shortly thereafter in 2013 began this downtrend that we've now broken.
Market sentiment is rising for silver but this is by no means its final stop, likeliness of breaking ATH's alongside Gold has probably never been higher so time to get in on the Long is now and hold tight. Short, medium or long-term AUG is a winner for me.
NB Primary Miners also worth looking at as supplementary divestment with even higher potential ROI's though far more speculative.
Trade closed: target reached
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.