The Silver Permabull

As experienced traders, you rarely want to take an extreme position. Being biased isn’t useful for objective chart analysis. Many dare to do that anyhow since no one remembers you making a bad call 15 years ago, but if you were right you can quote: “I told you so”. The other side of the coin is that trend needs to be identified early and then played just right since there is no grander edge than directional momentum. The Silver Permabull.

We aren’t after fame and glory. Midas Touch provides data as accurately as possible supporting good wealth preservation and wealth creation. We provided many principles and data about Silver over the last two years to shed light on a possible bull run in Silver. It was spot on to advise entries in March when Silver was trading still at US$12.00. We also provided readers with quite a few more low-risk entries. These to build a long term position with remainder runners (see our quad exit strategy) for the long term hold.

Silver, Weekly Chart, The second leg:

Silver in US Dollar, weekly chart as of December 10th, 2020

Silver in US Dollar, weekly chart as of December 10th, 2020

Now that we have the first successful leg with substantial profit-taking completed, we find a high likelihood for continuation into a possible second leg. After a sideways zone from September this year we see a progression from the lows of this sideways channel through its range. After that a possible initiation through a breakout of its upper bounds into a second leg.

Our projections are extremely conservative since typically second legs are the longest legs and as such a doubling in price from here is more than likely.

 

Silver, Daily Chart, May be like this:

Silver in US Dollar, daily chart as of December 11th, 2020

Silver in US Dollar, daily chart as of December 11th, 2020

It isn’t quite clear how the painted scenario of much higher prices will unfold from a small time frame perspective. We drew the most likely scenario above on the daily chart. This, that or the other entries will be posted in our free Telegram channel in real-time. The emphasis here is on the general probability. It points from a seasonality perspective to typically higher prices in December and January for this commodity. Typical year-end hiccups especially this year can not distract the professional from the larger picture.

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Disclaimer: All published information represents the opinion and analysis of Mr Florian Grummes & his partners, based on data available to him, at the time of writing. Mr. Grummes’s ...

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