Great News - Silver about to pause to let more on board
Hi, thanks for viewing. I hope this makes sense to someone - not just me :)
Great performance from silver recently showing;
1. That there is life in silver,
2. A nice impulsive move,
3. Out-performance of gold.
However, all my lines and pretty colours suggest that silver may be about to consolidate before moving higher. It's just how I see the chart (I will be adding to my physical holdings on consolidation). I am a big believer of RSI divergence - if used along with other proven tools - it can be very helpful. RSI is just a trailing momentum indicator, its not magic, but it can point to potential changes of direction.
When the RSI is making higher lows when price action is making lower lows, or making lower lows when price is still making higher highs I start looking for other signs of a reversal. Point Q and S are moderate signals, R is a weak one (a lower low vs an almost level RSI swing low), and T and U are, in my eyes at least, quite strong signals (much higher highs vs much lower lows on RSI).
I think these moves are part of a much larger move up and I am anxious not to let silver get away from me (if I am wrong and the correction is a deeper one - I will continue to accumulate). While I expect some consolidation before a short term move up to $18+, then back to mid-$15 range. So I will be adding to my position significantly on any pull-back while the price stays below USD20 an ounce. No final upside target yet (I have watched videos recently that call for silver to hit $28, $80, $100+, and $700 - they al can't be right and I am just happy to wait and see) but I do expect;
1. gold to remain bullish in 2019 and to probably set new all-time highs in USD terms (gold has already recently set new all-time highs in over 70 different currencies),
2. Silver to peak before gold,
3. Silver to appreciate significantly vs gold - I am targeting a 2x relative appreciation over the next 12 - 36 months (Gold to silver ratio below 45. I am swing trading silver to gain more gold for long term holding. I find myself wanting to diversify more and more outside of fiat currencies recently),
4. The silver peak - when it comes - to be relatively short-lived.
I have a general feeling that there are fewer and fewer places to park funds - especially for large funds - that will generate a respectable return. Sovereign bonds = negative real returns, term deposits same story, equities and looking shaky all around the world over the past 18 months, corporate debt is looking decidedly like a bubble about to burst (while also being low yield). It's hard to see a scenario right now where even a small portion of larger funds finds its way into gold and silver in search of returns. For me, it is hard to see the point of a "high interest" savings account returning less than 2% while gold & silver are so bullish, and cryptocurrency seems promising again this year (and my trading accuracy is much better too).
Good luck everyone, protect those funds.
Great performance from silver recently showing;
1. That there is life in silver,
2. A nice impulsive move,
3. Out-performance of gold.
However, all my lines and pretty colours suggest that silver may be about to consolidate before moving higher. It's just how I see the chart (I will be adding to my physical holdings on consolidation). I am a big believer of RSI divergence - if used along with other proven tools - it can be very helpful. RSI is just a trailing momentum indicator, its not magic, but it can point to potential changes of direction.
When the RSI is making higher lows when price action is making lower lows, or making lower lows when price is still making higher highs I start looking for other signs of a reversal. Point Q and S are moderate signals, R is a weak one (a lower low vs an almost level RSI swing low), and T and U are, in my eyes at least, quite strong signals (much higher highs vs much lower lows on RSI).
I think these moves are part of a much larger move up and I am anxious not to let silver get away from me (if I am wrong and the correction is a deeper one - I will continue to accumulate). While I expect some consolidation before a short term move up to $18+, then back to mid-$15 range. So I will be adding to my position significantly on any pull-back while the price stays below USD20 an ounce. No final upside target yet (I have watched videos recently that call for silver to hit $28, $80, $100+, and $700 - they al can't be right and I am just happy to wait and see) but I do expect;
1. gold to remain bullish in 2019 and to probably set new all-time highs in USD terms (gold has already recently set new all-time highs in over 70 different currencies),
2. Silver to peak before gold,
3. Silver to appreciate significantly vs gold - I am targeting a 2x relative appreciation over the next 12 - 36 months (Gold to silver ratio below 45. I am swing trading silver to gain more gold for long term holding. I find myself wanting to diversify more and more outside of fiat currencies recently),
4. The silver peak - when it comes - to be relatively short-lived.
I have a general feeling that there are fewer and fewer places to park funds - especially for large funds - that will generate a respectable return. Sovereign bonds = negative real returns, term deposits same story, equities and looking shaky all around the world over the past 18 months, corporate debt is looking decidedly like a bubble about to burst (while also being low yield). It's hard to see a scenario right now where even a small portion of larger funds finds its way into gold and silver in search of returns. For me, it is hard to see the point of a "high interest" savings account returning less than 2% while gold & silver are so bullish, and cryptocurrency seems promising again this year (and my trading accuracy is much better too).
Good luck everyone, protect those funds.
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