Silver to skyrocket11/30/2022 Please do not invest with money you cannot afford to lose. Warning: Investing often involves high risks and you can lose a lot of money. Information contained herein, while believed to be correct, is not guaranteed as accurate. We are 100% independent in that we are not affiliated with any bank or brokerage house. Success in investment vehicles with the best prospects for price appreciation can only be achieved through proper and rigorous research and analysis. No part of this document may be used or reproduced in any manner or means, including print, electronic, mechanical, or by any information storage and retrieval system whatsoever, without written permission from the copyright holder.ĭear Reader : There is no magic formula to getting rich. © Copyright 2020: Lombardi Publishing Corporation. dollar, and these factors create the perfect ingredients that send this precious metal soaring. The confluence of bullish indicators and constructive price action serves to suggest and confirm that a bullish outcome is a real possibility for the silver price. In a trading environment, when this signal is engaged in a bullish manner, traders apply strategies geared toward a bullish outcome, because the signal implies that this is the direction of least resistance. The bullish cross that was just generated suggests that bullish momentum will influence the silver price and, as a result, higher prices should be expected. MACD is trend-following indicator that uses signal-line crossings to distinguish between bullish and bearish momentum. The moving average convergence/divergence (MACD) indicator in the lower panel of the above chart has just crossed in a bullish manner. The following silver price chart illustrates an indicator that is also suggesting the notion that higher prices are likely. It is common for a price to accelerate in the direction suggested by the pattern after a successful backtest has been performed. This price action is what traders refer to as a “backtest,” and it serves to reaffirm the notion that the breakout was legitimate. The price action that followed the successful breakout of the inverse head and shoulders pattern is a textbook example of a price returning to test a previous level of resistance from above. Using this theory on the pattern that is illustrated in the above chart creates a potential price objective of $18.90. The theory surrounding this pattern states that a price objective can be obtained by taking the depth of the head and extrapolating that value above the neckline that completed the pattern. This pattern is instrumental in providing the direction of the next move, as well as providing a potential price objective for that move. The pattern is completed when the price closes above the neckline and indicates that a trend reversal is at hand. The neckline is formed by connecting the reaction highs. This pattern is suggesting that the selling in this precious metal has concluded, and that a higher silver price is likely to follow.Īn inverse head and shoulders pattern consists of three troughs and a neckline, where the middle trough (the head) is the largest, and the first and third troughs (the shoulders) are usually of equal size. The following silver price chart illustrates the price pattern that is suggesting that higher prices are a likely outcome.Ī technical pattern that is referred to by traders as an “inverse head and shoulders” pattern has developed on the silver price chart. The rules set out by this method of investment analysis are implying that the technical indicators and price patterns now apparent on the silver price chart are suggesting that a rally is likely to ensue. The use of technical price patterns to discern trends and forecast future prices is known as technical analysis. This could come at a time when technical indicators from the silver price chart support the notion of a higher silver price. dollar price would translate into higher precious metal prices. dollar sits in a precarious situation that increases the odds of a selling event gripping the dollar and driving it lower. In one of our previous publications, “ Perfect Ingredients for a U.S.
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