Silver, time is on your side
Since we gave up on the Gold Standard in 1971, Gold was almost shunned by financial institutions. Holding Gold represented questioning the monetary system. We find an impressive acceleration of exposure to Gold by funds, financial institutions, and even pension funds in recent times to gain credibility. A confirmation for the inflationary weakening of the Dollar. The yearly Gold mining production is around 200 billion US-Dollars, while we see the demand outpacing this by an extreme factor. With Gold rising to the forefront, Silver will follow closely. Silver, time is on your side.
Daily Chart, Silver in US-Dollar, Income producing:
Silver in US-Dollar, daily chart as of May 27th, 2021.
We were again able to profit last week from lower trendline entry trades by taking half off after the initial price moves in our favor. (see our quad exit strategy). We overall lightened up on our positions near options expiry (5), since a possible more significant retracement is likely. Our reentry projections are US$27.38 and US$26.41.
From a daily trading perspective, we are now stepping away from aggressive short-term reloading. Think exits versus entries! The above daily chart shows that principle-based entry density should be in the establishment zone of a trend and not when the world wakes up to Silvers directional run.
Silver in US-Dollar, Weekly Chart, Just getting started:
Silver in US-Dollar, weekly chart as of May 27th, 2021.
While it is sensible to get modest with aggressive trade frequency on daily timeframe, the weekly chart is still bullish. At the beginning of this year, a double top in price was firmly rejected, and prices were forced back into range. Over the last two months, Silver has advanced enormously from US$24 to US$28. Two weeks ago, we had a failed breakout through a significant resistance trendline. This week prices managed to trade above what was previously resistance and has now become support. No need to cash in the chips just now! We see a bullish consensus confirmed.
Silver in US-Dollar, Monthly Chart, Persistent strength:
Silver in US-Dollar, monthly chart as of May 27th, 2021.
Trustworthy guidance needs to be taken by the more significant player participation represented on the larger time frame charts. A look at the monthly chart shows volume supported buying. We can also see a strong supply zone below actual trading prices based on our fractional volume analysis at US$26.68 (yellow line). With this much focus on the precious metal sector and Gold coming to the forefront, we see Silver to rise into a stellar future in tech mid- to longer-term.
Silver, time is on your side:
We use a hybrid model of income-producing trading and long-term investing. We take partially initial profits quickly to mitigate risk. And we leave small portions of each winning trade exposed to the market and do not trail stops. Why no stops? The further one stretches a rubber band, the more extreme it snaps back. As such, in principle, trailing stops are a flawed methodology to protect profits. By taking partial profits early instead but leaving remainder positions exposed with only a break-even stop, the likelihood is that these runners survive significant retracements and end up in a trending environment to outpace any other profit-taking methodology.
Result:” If you catch a long-term trend, the rewards are enormous.” In the case of Silver, this long-term trend has a very high probability. With the intent of wealth preservation and long-term investments, we find the Quad exit strategy contrarian to hodling, Martingale strategies, pyramiding, and any other high-risk approach the one to surpass typical expectations.
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.