Silver was definitely undervalued due to strong demand, supply deficits and the gold-silver ratio.
In this chart, the blue moving line is the price of gold. We could obviously find that the gold-silver ratio has reached the highest level.
So for long term view, buying silver is a really good choice.
However, shall we buy the silver now or later? Here are couple reasons why i would like to buy silver later.
1. MACD: the macd of silver has reached overbrought area. In the recent 14 years, there were 8 times that silver's macd reached 4.81 level, and 6 of them dropped hard right after that. Now, the macd reached 4.81 level again.
2. RSI: the rsi of silver also reached overbrought area. In the recent 14 years, there were 7 times that silver's rsi reached 70 level, and 5 of them dropped hard right after that. Now, the rsi is moving above 72.2 level.
3. Short term trend is still bullish, but the strong resistance is around 17.32 to 17.57.
It's also possible that silver moving like October 2010 in the next half year.
But I prefer to wait a healthy correction before the next level breakout and it would be a good chance to buy low. (16.18 and 15.50 are strong supports. If silver break those supports, it may reach 14.90.)
In this chart, the blue moving line is the price of gold. We could obviously find that the gold-silver ratio has reached the highest level.
So for long term view, buying silver is a really good choice.
However, shall we buy the silver now or later? Here are couple reasons why i would like to buy silver later.
1. MACD: the macd of silver has reached overbrought area. In the recent 14 years, there were 8 times that silver's macd reached 4.81 level, and 6 of them dropped hard right after that. Now, the macd reached 4.81 level again.
2. RSI: the rsi of silver also reached overbrought area. In the recent 14 years, there were 7 times that silver's rsi reached 70 level, and 5 of them dropped hard right after that. Now, the rsi is moving above 72.2 level.
3. Short term trend is still bullish, but the strong resistance is around 17.32 to 17.57.
It's also possible that silver moving like October 2010 in the next half year.
But I prefer to wait a healthy correction before the next level breakout and it would be a good chance to buy low. (16.18 and 15.50 are strong supports. If silver break those supports, it may reach 14.90.)
Comment:
A Sharp Drop
Trade closed: target reached:
Another sharp drop