Silver Could Be Close To An Important Resolution / Commodities / Gold & Silver 2020

Silver is still in consolidation mode sinceearly September, but could be close to a resolution.

Below, is chart of silver:

On the chart there appears to have formedsome fractals. The current one has also broken out at the blue line in middleto late December of 2019, and is currently retracing.

It would be ideal for it to find support atthe 50-day MA or higher. Any lower and the pattern might be invalid. A breakoutat the blue dotted line would likely confirm the fractal comparison as valid.

There is a very good probability that thecomparison is indeed valid. This is based on the following, which is often aleading indicator for significant Silver rallies or Silver bottoms (in asimilar manner as how the US dollar is often a leadingindicator for Silver):

A USD/ZAR (US dollar/ South African rand)chart, which shows an important breakdown in middle December. Of course Silverbroke out about a week later (after the USD/ZAR breakdown) from the blue lineas can be seen on the first chart.

As is common, the USD/ZAR ratio has nowretraced to the breakout area in some sort of rising wedge pattern. Thebreakout of the wedge could mean that Silver’s current consolidation is closeto resolution.

If this USD/ZAR continues its fall, then wecould see a massive  silver rally soon.We are still in a very positive period for Silver, and my opinion a very goodperiod to accumulate for the long haul.

For more on this, andsimilar analysis you are welcome to subscribe to my premium service. Ihave also recently completed a Silver Fractal Analysis Report as well as a Gold Fractal Analysis Report.

Warm regards,

Hubert

“And it shall come to pass, that whosoevershall call on the name of the Lord shall be saved”

http://hubertmoolman.wordpress.com/

You can email any comments to hubert@hgmandassociates.co.za

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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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