Silver Is At A Critical Point Based On US Dollar Action / Commodities / Gold & Silver 2020

Previously, I have shown how  there were virtually no significant Silverrallies over the last 50 years during a period when the US Dollar index hasbeen rising.

Betting on a silver rally when the US Dollarindex is in decline makes for great odds. There have been two significantSilver rallies in the last 50 years (marked out with rectangles on the chartbelow). During both of these, the US dollar index was in serious decline.

Below, is an updated chart previouslyfeatured:

The chart above, shows the US Dollar indexvs the Silver Price chart. On the chart, I have marked two patterns (1 to 4)that could potentially be similar, and exist in similar context (just after amajor bottom in the US Dollar index).

If the second pattern continues to followthe first, then the US Dollar index will rally significantly over the comingmonths and years. If this happens, silver prices would likely be crushed.

If the patterns diverge from around thisarea, then the US Dollar index could suffer a significant decline to the point1 area and maybe even lower. This would likely bring a silver rally similar tothe late 70s.

Since the previousupdate, the US Dollar index has now fallen to the red dotted line. TheUS dollar is beginning to suffer for the massive stimulus package earlier inthe year. A breakdown at the red dotted line is a big step to confirming a USdollar index bear market and the current pattern diverging from the 90spattern.

Silver is already looking really good afteran important breakout last week. A breakdown of the US dollar would be a greatconfirmation of a sustained silver rally.

Silver is at a very important point in itseconomic life cycle, from a short-term and long-term view. If we get the rightconfirmations over the coming weeks and months, silver will likely have amassive multi-year rally:

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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