Human emotions are represented as candlesticks or lines on charts. Human emotions haven't evolved enough to not make these candlesticks and lines relevant today.
I realize that most silver fans don't believe in technical analysis (TA) and couldn't give a monkeys about lines, but maybe if you open yourself up to this side of things, you may be pleasantly surprised; I know I was when I first started exploring TA as a huge doubter.
What's new in this latest long term silver chart update?
+ Found some fascinating long term lines of resistance turned support, hopefully it is quite easy to see how they have shown this. + The coloured circles are an approx. estimated comparison to where we are in the market cycle. + The RSI is still not in oversold (under 30) territory, therefore the first part of the buy signal hasn't been indicated.
Personal Opinions
+ I love and own silver coins; they're beautiful, but I also believe in TA and because of this believe silver will go lower before starting the next bull run and market cycle. + This is all just my opinion of course; make of the chart what you will and of course it is NOT financial advice.
Thanks for viewing. Please feel free to comment or start a discussion below. Cheers.
Comment
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Missed the biggest line of them all, added now. Can you spot it?
Very insightful analysis. We made a similar long term study:
Peter101
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Nice analysis! But here's a but... The graph does not show the rigging in the 'silvermarket'. In 2018 it was official admitted that several parties were rigging the market and this is one the reasons that silver will go to a 'normal' market price in the near future. 2019 will be THE year of silver because it will be on the blockchain and the rigging will be more difficult... So the graph will be more 'honest' to take certain conclusions. Keep up your work!
fifty2kph
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@Peter101, yep, for sure. Good point. We can just use what we got. Thanks for your feedback.
fifty2kph
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@Peter101, although wasn't it manipulated AF during the last market cycle also around 1980 by the Hunt brothers who had cornered the silver market?
Peter101
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@StrivingYogi, The difference with the Hunt brothers and now is that in the 'Hunt' fase the price was manipulated upwards and now decades down worth ... So when the market would normalize and also factored in the inflation aspect we could much higher prices. Purely looking to TA we can see since the 80-ties a huge cup/handle pattern (gives target of at least 100 usd, and higher..) Nowadays i look to the contracts on the comex / lbma and look when positions are taking in or i look if there's divergence between the buyers and sellers and compare that with TA (patterns). Works for me better.
fifty2kph
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@Peter101, sounds like a full time job right there. Good knowledge.
ikdy
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@Peter101, i must add supply and demand is working more in silvers favour now. The cost of mining it makes lower prices more unlikely. I do agree with chart however, I believe it will get pushed down once more and thats when we load up, and i think the accumulation period will be a lot shorter time frame than before.
fifty2kph
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@ikdy, thanks for your feedback. It does seem to be going through the market cycle faster this time.
Peter101
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@ikdy, If you buy physical silver you have to pay a premium already and this will become worse(higher). It tells me that silver has already been at its lowest point. So, in my opinion, we could see higher prices this year, but perhaps there is a possibility that we will go down one or twice or... nobody knows for sure.. A lot of people know that economic evolvements for 2019 are not so good and are looking for safe havens as Silver/Gold and Crypto's...