Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks Correct into Bitcoin Happy Thanks Halving - Earnings Season Buying Opps - 4th July 24
24 Hours Until Clown Rishi Sunak is Booted Out of Number 10 - UIK General Election 2024 - 4th July 24
Clown Rishi Delivers Tory Election Bloodbath, Labour 400+ Seat Landslide - 1st July 24
Bitcoin Happy Thanks Halving - Crypto's Exist Strategy - 30th June 24
Is a China-Taiwan Conflict Likely? Watch the Region's Stock Market Indexes - 30th June 24
Gold Mining Stocks Record Quarter - 30th June 24
Could Low PCE Inflation Take Gold to the Moon? - 30th June 24
UK General Election 2024 Result Forecast - 26th June 24
AI Stocks Portfolio Accumulate and Distribute - 26th June 24
Gold Stocks Reloading - 26th June 24
Gold Price Completely Unsurprising Reversal and Next Steps - 26th June 24
Inflation – How It Started And Where We Are Now - 26th June 24
Can Stock Market Bad Breadth Be Good? - 26th June 24
How to Capitalise on the Robots - 20th June 24
Bitcoin, Gold, and Copper Paint a Coherent Picture - 20th June 24
Why a Dow Stock Market Peak Will Boost Silver - 20th June 24
QI Group: Leading With Integrity and Impactful Initiatives - 20th June 24
Tesla Robo Taxis are Coming THIS YEAR! - 16th June 24
Will NVDA Crash the Market? - 16th June 24
Inflation Is Dead! Or Is It? - 16th June 24
Investors Are Forever Blowing Bubbles - 16th June 24
Stock Market Investor Sentiment - 8th June 24
S&P 494 Stocks Then & Now - 8th June 24
As Stocks Bears Begin To Hibernate, It's Now Time To Worry About A Bear Market - 8th June 24
Gold, Silver and Crypto | How Charts Look Before US Dollar Meltdown - 8th June 24
Gold & Silver Get Slammed on Positive Economic Reports - 8th June 24
Gold Summer Doldrums - 8th June 24
S&P USD Correction - 7th June 24
Israel's Smoke and Mirrors Fake War on Gaza - 7th June 24
US Banking Crisis 2024 That No One Is Paying Attention To - 7th June 24
The Fed Leads and the Market Follows? It's a Big Fat MYTH - 7th June 24
How Much Gold Is There In the World? - 7th June 24
Is There a Financial Crisis Bubbling Under the Surface? - 7th June 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Incredible Silver Trade – What You Need to Know

Commodities / Gold and Silver 2018 Apr 20, 2018 - 08:21 AM GMT

By: Chris_Vermeulen

Commodities

Everyone is talking about the incredible price move in silver on April 18, 2018.  For years we have been talking about the setup in the metals markets and alerting our members to opportunities as they arise. Recently, we alerted our members to an incredible opportunity in Silver and we caught this move before it skyrocketed higher.  Now, everyone wants to know what’s next.  Here is our take on the Silver trade and what you need to know.

All the technical and price valuation indicators regarding the relationship of Gold to Silver have been set for many months telling traders that Silver is the clear leader in any price advance in metals.


Current open positions show that a relatively strong short bias has been in place in Silver for a few months.  This adds to the potential of a massive short squeeze rally playing out over the next few weeks/months.  Additionally, as greater fear enters the markets, Gold and Silver will likely advance quite substantially.

Technically, Silver has entered a new phase of trend on April 11, 2018 with a new price high that broke previous high price levels.  This indicated that Silver may attempt a price breakout with a new bullish trend.  Additionally, a convoluted FLAG formation completed near that same date and price began to oscillate between $16.00 & $16.65 – retesting support and resistance levels before the breakout new high on April 11.  Our longer-term analysis, which we’ll illustrate in the last chart of this series, was clearly showing us this recent price rotation was the setup of a Wave 3 price advance and we just needed to be prepared for it.

This, more detailed technical chart below, illustrates the April 11 new price high breakout as well as the rotation of the primary technical indicators near this April 11th date.  Even though we didn’t have any clear closing price advance above technical resistance (near $16.80), we began to see upside pressure building that convinced us the time for the breakout was nearing.

Another key factor to keep in mind is that we had yet to see any real price advance with higher volume – a key element of any sustained price advance.  Even as of today, we are seeing the first larger volume day with a moderate price advance.  We do not consider this “technical confirmation of any sustained upside move” yet and we are still waiting for a high volume day with an accelerated upside price advance.

This, final, Weekly Silver chart below shows a clearer picture of what we are expecting to play out over the next few weeks and months.  The $17.20 closing price on April 18th was technically a “confirmed price breakout” and established a new bullish trend in Silver.  Right now, $17.45 is critical resistance and any closing price advance above this level will confirm an advance to near $18.35 (which will likely be very quick).  $18.35 is the current upper resistance zone that price MUST breach in order to advance higher.

All this analysis is based on Fibonacci price rotation theory which indicates that price will always attempt to establish new higher highs or lower lows.  Thus, given the new bullish price trend, these upper resistance zones become targets for the future price advance in Silver.

We would like to add that any price rotation where price drops near $16.75 or lower, yet stays above $16.00, should be considered a “Buy Zone”.  This range is currently acting as price support and any retest of this range will likely result in a solid “buy entry opportunity”.  $16.00 is currently our hard support level, think of it like the water level in the pool.  This means any price rotation below $16.00 would cause us to become much more cautious of any future price rally.  The ultimate recent low, near $15.65 would have to be breached before we would consider this new bullish trend ENDED or OVER.

Assuming we get additional higher volume price advanced in the near future and the upper resistance targets are hit and breached, our immediate upside objective is $21.25 and further upside targets can be identified as we do more detailed research.  The upside potential of this Silver trade is immense and could last many months or well into 2019 or longer.

If you want to know what we are telling our members about this silver trade, then please consider joining Wealth Building Newsletter for more detailed Daily videos and analysis.  You won’t want to miss this move in the metals, folks.  We’ve been calling ETF trades for months with incredible accuracy.

We know most of you who follow our analysis know we’ve been calling these markets almost perfectly since well before the start of 2018.  Visit our website to read more of our recent research reports and to learn how we can assist you in staying well ahead of these market moves.  Our most recent trade for our members pulled +17.7% in just a few days.  We can’t stress the importance of having quality research partners to assist you in knowing what to expect in the markets and having a team of traders to assist you in finding great trades.  We can help you find greater success and stay our of trouble in the markets.

BECOME A TECHNICAL TRADER AND PROFIT FROM OUR TRADE ALERTS!

Chris Vermeulen
www.TheTechnicalTraders.com

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and is the author of the book: 7 Steps to Win With Logic

Through years of research, trading and helping individual traders around the world. He learned that many traders have great trading ideas, but they lack one thing, they struggle to execute trades in a systematic way for consistent results. Chris helps educate traders with a three-hour video course that can change your trading results for the better.

His mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.

He is a regular speaker on HoweStreet.com, and the FinancialSurvivorNetwork radio shows. Chris was also featured on the cover of AmalgaTrader Magazine, and contributes articles to several leading financial hubs like MarketOracle.co.uk

Disclaimer: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Technical Traders Ltd., its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including this report, especially if the investment involves a small, thinly-traded company that isn’t well known. Technical Traders Ltd. and the author of this report has been paid by Cardiff Energy Corp. In addition, the author owns shares of Cardiff Energy Corp. and would also benefit from volume and price appreciation of its stock. The information provided here within should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Technical Traders Ltd. and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect.

Chris Vermeulen Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in