Silver – A week in review

July 7, 2019

In our chartbook from June 30th 2019, we had planed a low risk reentry zone which was right away hit. When the market opened that weekend after the publication, the trap we had set, was sprung. We posted the entry in real time in our live Telegram channel. In addition we also took a play in the gold market since it seemed bullish as well. This news driven gap opening on momentum felt like a good opportunity to participate in the market. We call this week´s silver chart-book “Silver – a week in review” to see how these reentries panned out.

 

Silver – a week in review! Daily chart of silver  7/2/2019, strong reversal move:

 

Silver in US-Dollar, daily chart as of June 2nd, 2019

 

Daily chart as of July 2nd 2019, Gold, “winner winner, chicken dinner”:

 

Gold in US-Dollar, daily chart as of June 2nd, 2019

 

Right the next day we got rewarded for daringly buying into the decline. Both markets aggressively reversed course and continued in their bullish direction. The previous news heavy week and weekend had been shrugged off. We used our quad exit strategy that de-pleats risk dramatically by cutting exposure size in half  through “early profits taking”.  Thus we were able to lock in 1.24 % profits on our silver holding. Our gold trade rewarded us with 2.44% at this first target.

 

July 3rd 2019, Silver daily chart, back at distribution level of resistance:

 

Silver in US-Dollar, daily chart as of June 3nd, 2019

 

Yet on July 3rd 2019 we were back at a strong resistance zone at the US$15.45 price level and the bulls ran out of steam.

 

Daily chart July 3rd 2019, Gold/US Dollar, double top price formation:

 

Silver in US-Dollar, daily chart as of June 3nd, 2019

 

Yet on July 3rd 2019 we were back at a strong resistance zone at the US$15.45 price level and the bulls ran out of steam.

 

Daily chart July 3rd 2019, Gold/US Dollar, double top price formation:

 

 

Silver in US-Dollar, daily chart as of June 5th, 2019

 

By the end of the week Silver prices had reached our original entry zone. Since we had raised the stop to break even levels, we got stopped out with the rest of our holding.

 

Gold/US Dollar daily chart, July 5th 2019, Gold hanging on by a thread:
 

 

Gold in US-Dollar, daily chart as of June 5th, 2019

 

Our gold holding had a massive drop as well on Friday, but with a bit of luck missed our stop target point by merely 51 cents. Our entry price was US$1,386.24 and the lowest traded price on Friday was US$1,386.75.

 

This example shows one more time how aggressive entry timing paired with our Quad Exit Strategy reduces risk immediately and guarantees more often than not at least moderate profits. In this case 0.62%. Now this might not seem enough, but if reviewing the above charts one will find a very likely scenario that with a simple “all in, all out” strategy the silver trade would have been stopped out at a full loss.

 

In conjunction with the relative strength technique to apply further risk hedging buy adding a gold position that showed relative strength in the market, we even still have a “foot in the door”; a remainder position that is still in place and should original bulish consensus remain might still produce a handsome additional reward besides this gold position already being handsomely cashed out by half with a 2.44% profit yield.

 

Taking aggressive action of accumulation in a holding against herd behavior, with extreme conservative methods of early “withdrawals”(=taking profits off the table and reducing risk by cutting the position in half) pays off. Adding additional edges like diversification within the sector through an even stronger (relative strength) counterpart holding, are further methods to ensure success and risk mitigation.

 

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All published information represents the opinion and analysis of Mr Korbinian Koller & his partners, based on data available to him, at the time of writing. Mr. Koller’s opinions are his own and are not a recommendation or an offer to buy or sell securities. Mr. Koller is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations. As trading and investing in any financial markets may involve serious risk of loss, Mr. Koller recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications.

 

 

 

Although a qualified and experienced stock market analyst, Korbinian Koller is not a Registered Securities Advisor. Therefore Mr. Koller’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction. Past results are not necessarily indicative of future results. The passing on and reproduction of this report, analysis or information within the membership area is only legal with a written permission of the author.

 

 

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