Asset Watch
Tuesday, June 14, 2022
Silver’s monthly chart is eerily similar to the 1980s. For example, after recording a parabolic spike, silver cratered, rallied, cratered, rallied, and then a final swan song sent it below $10 for roughly 20 years. The arch symbols on the left side of the chart show how lower lows were present during each upswing.
Similarly, the arch symbols on the right side of the chart show how resistance materialised each time silver attempted to recoup its prior highs. More importantly, silver’s third and final leg down in the 1980s occurred after the MACD recorded a sell signal – which is depicted by the blue line at the bottom of the chart crossing the orange line from above.
Likewise, a sell signal is present today. So with the $22 range marking long-term resistance in 1980, 2008 and 2016, is silver poised to re-test $15? For context, the level coincides with the 1983 and 2006 highs and the low-end ranges from 2010 onward.
A cause for pause?
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
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