Solar panels etf green energy versus silver rocket!
So the idea is based on a paired trade or what I think of as a hedged trade. Paired in that I am buying two things that I think may be correlated but both will not necessarily do well. If one does well the other may not do well and vice versa. My idea is to buy this solar energy etf as a hedge against all of the silver mining companies that I have perhaps foolishly invested in thinking that silver would go up one day! If I am wrong and silver remains depressed and even collapses further due to recessionary fears even a major depression perhaps, who knows. Anyway, if this turns bullish straight away which I do not expect but could happen then if we go over 130 on OBV and then find support there then I think go long there at least until proven otherwise. Otherwise look for support on OBV at 46 and if not there then 7.9 OBV. Worst case scenario if the world turns to custard, then it has to stop somewhere around -17.86. I would round it to -18 myself. On RSI we need to find support at 46, or 45, or 44. It may look like I am being indecisive but that is just where there is possible support levels. Below there on RSI there may be support at 39 and 36. We really need to break out of the downwards trending channel. I think breaking horizontal resistance will be more meaningful than breaking the trend lines of the channel. I think there is a very interesting looking triangle pattern that looks like it will break before 2025 or around that time at the latest. This then is my way of hedging my silver investments. Considering that silver is major component of solar panels and that if the price of silver goes down that has to be bullish for solar panel companies surely! Personally, I think that silver is hard to mine and is not that easy to find but with 70-80% of silver mined as a byproduct of other mining for base metals as well as precious metals then perhaps if there is a general boom in mining for green transition materials in particular funded by fiscal spending by governments buying votes through the green agenda then who knows it might work. Plus, if climate change is real and this is our do or die moment as a species it could all pan out. There's no alternative really. In terms of geopolitical events this could be a great hedge as well. If China and US have a war over Taiwan, then any investments in China could go down the tubes but once resolved then it would go back up maybe. China produces most of the solar panels in the world or at the least a high percentage. The main holdings in this etf many have Chinese names, so I am assuming that they are in China and probably in central Asia as well. Another thing that could be bullish is that volume is falling as price falls. It has based for a long period of time and there is potentially a cup and handle formation in the basing pattern as well. The fibonacci extensions are interesting as well. It found support at exactly the right place. It could be a bull flag.
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