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Silver Chartbook - Silver, Focus On Resilience

Apr. 08, 2021 8:08 AM ETSilver Spot Price (XAGUSD:CUR)PSLV, SLV, PSLV:CA4 Comments
Florian Grummes profile picture
Florian Grummes


  • In spite of an eight months correction in the precious metals sector, silver has shown quite some resilience again and again. In fact, it has held up better than gold.
  • Resilience is the capacity to recover quickly from difficulties - in other words, toughness.
  • Sideways range entries with quick risk elimination are representative of resilience.
  • It isn’t business as usual; these times require extra preparation for the long haul.
  • And you, as the trader and/or investor, need to be in the best shape and resilient too.

Resilience is the capacity to recover quickly from difficulties. In other words, toughness. Looking back over the last year, the world has experienced just such toughness. Unfortunately, this isn’t over yet. Maybe it’s even just the beginning, and much more is to come? We believe preparation is the wise course of action, but it needs a plan.

Silver’s price faces just the same strain. Much influenced by various strings pulling. It is essential to stay focused on the prime fundamentals and the clear long-term case for the shiny metal. Numbers for demand are overwhelmingly positive, and the fact that news coverage is strong doesn’t justify the temporary price dip to be principle based.

It is not easy to be a contrarian, yet it is very rewarding. We firmly believe this to be another good opportunity to add to one’s physical holdings of Silver (XAGUSD:CUR).

Silver in US-Dollar, Weekly Chart, Last Week's Setup:

Silver in US-Dollar, weekly chart as of March 24th, 2021.

We posted this chart in last week’s Silver chartbook publication.

The weekly chart of Silver shows in white the last eight months sideways range. Within that range, we had three dominant zones. Trading at the bottom of range three (green box) suggests the highest likelihood of turning point to be at trading prices right at this moment or below (all the way down to US$22.50). Watching Gold, the sector leader for relative strength or weakness towards Silver, to pick out the highest likely turning spot and the low-risk entry point is the goal over the upcoming weeks. In short, while prices trade within the yellow circle price range, US$22.50 to US$25.05 we are looking for low-risk entry points.

Silver in US-Dollar, Weekly Chart, Execution on the Plan:

Silver in US-Dollar, weekly chart as of April 1st, 2021.


This article was written by

Florian Grummes profile picture
Florian Grummes is an independent financial analyst, advisor, consultant, trader & investor as well as an international speaker with more than 25 years of experience in financial markets. Via Midas Touch Consulting he is publishing weekly gold, silver, bitcoin & cryptocurrency analysis for his numerous international readers. Florian is well known for combining technical, fundamental and sentiment analysis into one often accurate conclusion about the markets. www.midastouch-consulting.com

Analyst’s Disclosure: I am/we are long XAGUSD:CUR. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (4)

Catman69 profile picture
Thank you.
Catman69 profile picture
Paper floats. Plastic waists oil .steel sinks .
Catman69 profile picture
When you mine the earth. It Crumbles. Coming much faster .
Good piece, Florian - silver miners very strong today:

HL + 5.5%
SILJ 4.5%
PAAS 4.4%
SLVP 4.1%

Sold small trading positions in SILJ & PAAS.
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