Silver Price Trend Analysis / Commodities / Gold & Silver 2020
Long-term Trend Analysis
Silver faces very heavy overhead resistance from $18 all the way to $21 which means that it is going to be tough going and take significant effort for Silver to reach let alone breach $21. Whilst there is strong support at $16 and $14.5 (ignoring the crash low of $11.64).
Therefore as was the case in January the long-term chart continues to warn to expect Silver to mark time before it manages to break above it's 2019 high of $19.75 to target a trend towards $21 that it may fail to reach during 2020. What happens if Silver manages to break above $21 during 2020, well then it would target a trend to $25.
Trend Analysis
This chart illustrates that Silver tends to spend more time drifting lower / sideways then trending higher. So expect short sharp rallies punctuated by periods of drift. Which is where we appear to be finding ourselves after the failure of Silver to clear $19 at the start of the year, greatly under performing the Gold Price. Whilst I am ignoring the March crash low because Silver is prone to making false signals, thus the break below $14.30 was a false break lower.
The SIlver price is currently trending higher towards resistance at $19, and then $20. The odds of Silver clearing resistance does not look good. Whilst it may well assault on $20, I think a trend lower to stay in the $19 to $16.5 zone is more probable than a break higher.
MACD - MACD has unwound its oversold state, so Silver looks primed for a significant correction that could take silver into the $14.5 to $16.5 support zone.
Elliott Waves - The rally off the March low looks corrective i.e. multiple ABC patterns can be observed, if so then the current rally should terminate before Silver gets to $20, so quite soon which then i
The whole of this extensive analysis that concludes in a detailed trend forecast for the Silver price was first made available to Patrons who support my work: UK and US Corona Catastrophe Trend Analysis, Stock Market State and Silver Price Trend Forecast Summer 2020
UK Corona Catastrophe Trend AnalysisFEEDING THE INFLATION MEGA-TREND US Corona Catastrophe Trend AnalysisThe Corona Riots of 2020 Have Begun!Stock Markets Failing to Give Another AI Mega-trend Buying OpportunitySilver vs Gold TrendGold Silver RatioSilver Long-term Trend AnalysisSilver Trend AnalysisFormulating a Trend ForecastSilver Price Trend Forecast ConclusionSo for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $3 per month. https://www.patreon.com/Nadeem_Walayat.
And ensure you are subscribed to my ALWAYS FREE newsletter for my next in-depth analysis.
Your analyst.
Nadeem Walayat
Copyright © 2005-2020 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.
Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.
Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk
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 trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.
Nadeem Walayat Archive |
© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.