Silver holding the lineSilver, which has been hit this on Thursday, made a comeback right after this quick selloff. This quick recovery might be seen as a confirmation of the bull market in place since last year, as the deep has been bought quite quickly by investors.
This set up seems particularly positive for the months to come, in this reflationary recovery in which silver would play a role as a monetary metal (a store of value), as well as an industrial one.
SIL
Alien metals in a very positive set upAlien metals (UFO) after an 8-month correction seems to be about to turn up again judging by:
- A momentum turning up
- A reverse head and shoulders pattern
- A price above the 50-day and 200-day moving averages
- A positive Ichimoku set up
Knowing that last year's up leg ended up with a multiplication by 30 of its price, before correcting, UFO could this time once again become a very profitable investment for anyone long junior silver miners.
Retesting its support before reaching new highsAlien Metals, which is a high beta play on silver, but also other base metals such as iron or copper, seems to be retesting its resistance after a 7-month consolidation.
Given the positive dynamic of precious and base metals, $UFO might reach new highs in the coming semester.
Silver Silver, after a decade long fall, has entered a positive momentum and now offers a high risk-return trade-off.
Correcting the price of silver for the quantity of money, we can notice that, according to this measure, the last silver peak of 2011 would now be equal to roughly $100.
While this does not indicate whether silver should reach $100 over the medium term, it for sure highlights the potential of silver and silver miners.
SIL points of interestIf SIL can hold above 44.5 the next few days, we could see a breakout to 66, 67 over the next few weeks. If not, it could drop as low as 40 before a bounce. That would not be surprising either as we're in a time of extra volatility likely for the next month. If it drops much below 40 I would get the hell out of all stocks.
Inflation + GLD ($GLD $DXY $Sil $SPY #Gold #SPY)see full chart & Follow at www.tradingview.com
A while back, you may see me call the top on Gold because it was up 25% in the last 12 months. while market was only 7%.
Some things have changed since then, Gold came back down a bit, The FED (FOMC & Powell) have declared they would let inflation run wild.
Interesting pattern on Gold, as market is starting to dip. we may get a slight bounce opportunity on GLD, as people panic and move into gld as hedge.
What's my play?
I will probably sell GLD puts at $179 to collect options premiums.
What's the significance of this?
KEY TAKEAWAYS About Gold
-Gold has long been considered a durable store of value and a hedge against inflation .
-Over the long run, however, both stocks and bonds have outperformed the price increase in gold , on average.
-Nevertheless, over certain shorter time spans, gold may come out ahead.
Gold vs. Stocks and Bonds
When evaluating the performance of gold as an investment over the long term, it really depends on the time period being analyzed. For example, over a 30-year period, stocks and bonds have outperformed gold , and over a 15-year period, gold has outperformed stocks and bonds.
KGC- Gold/Silver mining play (Industry)As usual, demand for Gold mining stocks has risen with the ore rally. Mining stock such as KGC has outperformed major gold/silver mining ETFs and completely obliterated gold/silver ETFS since March.
It is a higher risk and higher reward play for investors who want to ride the gold/silver trend.
EV/EBITDA TTM, Price/cash flow TTM and many other valuation ratio indicate that KGC are undervalued compared to its peers.
Silver hit target on time! Next projected target at 30.The target previously posted hit target spot on time !
So what’s next?
I would hazard a projection that despite the parabolic run, it still might have some legs to go, but am expecting the next target area (green ellipse with red outline) to be volatile. Not expecting a close above 30.30 though... it is just over stretched.
IF silver still continues, the;we are in for some serious s hitting the fan... I don’t know what it would be, next week tells more!
Btw, for study sake, I have put in the bright green arrows for the typical best entry points.
Stay safe....
Silver upside target at 27.70Recently, there was a lot of hype on precious metals, and Silver outshone Gold (finally!), particularly over the last week or two.
This who are in positioned find themselves wondering when this parabola will end. And I’ve been asked one too many times for a projected expectation. While I do not have a crystal ball (at all), price target is calculated to be at 27.70 , (with a possible intraday extension to 28) for the immediate target in this current parabolic run. Likely to reach this target around 3-5 August, if not a bit earlier.
Momentum is very bullish at this point, with “all systems go at full speed ahead”, even on a longer term.