Right now you might find yourself in this first moment of catching a breath. You might have started getting used to a work from home. In addition, you might be feeling more prepared having stacked up on essentials. Maybe you even got used to this new world revealing itself. We pointed out in our last weekly silver chartbook how important it is to be in a stable emotional condition for high value decision making. This is especially true since markets are counter intuitive. You need to use your cognitive functionality to make a good trading plan. Intuition most often will lead you astray. We assume a stable state is now reached. However, we also think this is the time to Brace yourself.
Covid-19 is not the root of the problem. It only started a multitude of domino cause effect models to tumble. A dangerous game is to take too long emotional breathers between the effects of these individual domino events. Don’t allow them to emotionally paralyze you. In case you can find a moment of clarity now, grab it by its tail and act. If you study past economic events in a time of a pandemic, you will discover, that finding oneself in a victimized situation has been cause to much suffering for individuals. Proactively getting in charge and staying in charge of your future is key.
At this point, it matters little at what high probability low risk entry point in what time frame you participate. However, prepare! Getting ones feet wet is what could make the difference to truly strike when everything lines up.
Silver Weekly Chart: Brace Yourself
Silver in US Dollar, weekly chart as of March 27th, 2020
The weekly chart shows good strength (above 0.382 Fibonacci retracement) on this tweezers bottom (yellow circle).
It would come at no surprise recent lows to be retested in the near future. (a double bottom formation in the US$12.50 price zone would be considered a low risk entry zone)
New lows can easily be printed as well.
Silver Daily Chart: Various Scenarios
Silver in US Dollar, daily chart as of March 27th, 2020
The daily chart shows three scenarios:
If you followed our telegram channel, where we post our trades in real time, you are well positioned and already enjoyed substantial profits (including additional reloads not shown in this chart).
Assumes a speculative price advance with an entry zone after a pullback.
Anticipates an immediate price decline with a low risk entry zone.
Last weeks bounce created new technical data usable for reentry points. After the initial three week drop, there is more clarity in charts. Now is the moment to plan for the future. Not at the time when a new down leg in the market is happening and you get bombarded with negative news again. Proactively planing, for example hedge portfolio remainders by collecting double digit dividends in oversold oil stocks in the mid term, can be a passive strategy to avoid disaster. Above all, we believe strongly that silver prices over the long term are one of the finest ways to counteract a multitude of problems financial systems will be confronted with in the future.
Part of these opportunities already show their hand. Simply google e-bay sales prices of physical silver coin and bullion. You will find sales already priced near 100% over its paper value.
Join our free Telegram Group :https://t.me/joinchat/HGe22hDDEEl0LvFGAgEZ9g
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.
RISK DISCLAIMER: All forms of trading carry a high level of risk so you should only speculate with money you can afford to lose. You can lose more than your initial deposit and stake. Please ensure your chosen method matches your investment objectives, familiarize yourself with the risks involved and if necessary seek independent advice.
U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Trading financial instruments of any kind including options, futures and securities have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the options, futures and stock markets. Don't trade with money you can't afford to lose.
NFA and CTFC Required Disclaimers: Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of experience and risk appetite. Do not invest money you cannot afford to lose.
EARNINGS DISCLAIMER: EVERY EFFORT HAS BEEN MADE TO ACCURATELY REPRESENT THIS PRODUCT AND ITS POTENTIAL. THERE IS NO GUARANTEE THAT YOU WILL EARN ANY MONEY USING THE TECHNIQUES, IDEAS OR PRODUCTS PRESENTED. EXAMPLES PRESENTED ARE NOT TO BE INTERPRETED AS A PROMISE OR GUARANTEE OF EARNINGS.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAN ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All information presented or any product purchased from this website is for educational and research purposes only and is not intended to provide financial advice. Any statement about profits or income, expressed or implied, does not represent a guarantee. This presentation is neither a solicitation nor an offer to Buy/Sell options, futures stocks or securities. No representation is being made that any information you receive will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Please use common sense. Get the advice of a competent financial advisor before investing your money in any financial instrument.