Jan 6th 2020, Silver Chartbook – Silver shining in 2020

Silver shining in 2020

Why might this be a good year for silver? Let us look at some silver fundamentals and some general factors that influence the price of silver:

1. A wide range of industries have an ever-increasing demand for silver (Used in the production of batteries, bearings, printing inks, solar panels and water purification)

2. Overall, world demand has outstripped world production of silver since the early sixties.

3. Aggressive precious metal buying policy by most of the world’s central banks should have already lowered the supply for the next upward boom, but the prices are being kept at extremely low levels artificially.

4. Unstable world financial conditions: silver, like gold, acts as a hedge against failing paper currencies (fiat money).

That being said, a closer look at the longer term view of silver prices from a chart perspective is warranted:

Silver shining in 2020, monthly chart, silver/US Dollar 01/06/2020, “great risk reward ratio”:

Silver in US Dollar, monthly chart as of January 6th 2020

Silver in US Dollar, monthly chart as of January 6th 2020

The monthly chart above shows silver prices trading near the mean. This allows for expansion. Triple moving average support (Simple moving averages settings of 20, 40 and 200) can be interpreted as a good timing starting point for a price move. A break through the $20 overhead resistance would allow for a swift move to $26, $27. Besides a good support established now at $16, we find just below at $14 a solid supply and demand zone for silver prices. All in all an opportune large time frame view with a great risk reward ratio. As such we have been trading silver actively and post all our trades in real time in our telegram channel.

 



Silver/US Dollar 01/06/2020, weekly chart, “confirmed breakout”:

Silver in US Dollar, weekly chart as of January 6th 2020

Silver in US Dollar, weekly chart as of January 6th 2020

Taking a look at the weekly chart shows confirmation. Prices have been breaking out from mid of last year of a consolidation period (yellow triangle). Prices advanced swiftly from a $14.50 to $19.50 for a substantial $5 gain. Since than a second leg up has been forming over the last ten weeks to support the direction of price. the weekly chart mutually provides for a promising chart into 2020 as of now.

Silver shining in 2020

In short, market manipulation ensures that prices, for now, are kept low while the real-world supply is dwindling due to an increased industrial demand coupled with an aggressive buying policy by central banks. The greater the instability in the world and in financial markets, the more people buy gold and silver and silver prices therefore rise along with gold prices.

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About the Author:

Outstanding abstract reasoning ability and ability to think creatively and originally has led over the last 25 years to extract new principles and a unique way to view the markets resulting in a multitude of various time frame systems, generating high hit rates and outstanding risk reward ratios. Over 20 years of coaching traders with heart & passion, assessing complex situations, troubleshoot and solve problems principle based has led to experience and a professional history of success. Skilled natural teacher and exceptional developer of talent.Avid learner guided by a plan with ability to suppress ego and empower students to share ideas and best practices and to apply principle-based technical/conceptual knowledge to maximize efficiency. 25+ year execution experience (50.000+ trades executed) Trading multiple personal accounts (long and short-and combinations of the two). Amazing market feel complementing mechanical systems discipline for precise and extreme low risk entries while objectively seeing the whole picture. Ability to notice and separate emotional responses from the decision-making process and to stand outside oneself and one’s concerns about images in order to function in terms of larger objectives. Developed exit strategies that compensate both for maximizing profits and psychological ease to allow for continuous flow throughout the whole trading day. In depth knowledge of money management strategies with the experience of multiple 6 sigma events in various markets (futures, stocks, commodities, currencies, bonds) embedded in extreme low risk statistical probability models with smooth equity curves and extensive risk management as well as extensive disaster risk allow for my natural capacity for risk-taking.

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