{"id":163303,"date":"2020-01-15T09:00:06","date_gmt":"2020-01-15T14:00:06","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=163303"},"modified":"2020-01-14T19:49:20","modified_gmt":"2020-01-15T00:49:20","slug":"silver-traders-big-trend-analysis-part-ii","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/01\/silver-traders-big-trend-analysis-part-ii\/","title":{"rendered":"Silver Traders Big Trend Analysis \u2013 Part II"},"content":{"rendered":"
January 15, 2020<\/div>
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By TheTechnicalTraders.com<\/u><\/a><\/strong>– This, the second part of our Silver research article suggesting Silver may be forming a massive price base in preparation for an explosive upside move, will continue from Part I of this research series<\/a><\/strong>.<\/p>\n

Our research team believes Silver is setting up in a price pattern that may already be \u201cripe\u201d for an explosive upside move.\u00a0 Our researchers have poured over the data and believe the disparity between Gold and Silver is already at excessive levels.<\/p>\n

Historically, anytime the disparity between Gold prices and Silver prices (rationalized into comparative Gold price levels) breaches 30% to 60% and Gold begins an upside price advance, Silver typically begins to move higher with 4 to 8+ months.\u00a0 This setup pushes the Gold to Silver ratio back below 50 or 60 as Silver rallies substantially higher, and faster than the price of Gold.<\/p>\n

Comparatively, Silver continues to trade within a sideways price range after basing in early 2016.\u00a0 This price range has been fairly consistent between $14.50 and $21.0.\u00a0 With Gold recently starting to move higher<\/a><\/strong> because of the US\/Iran military conflict, this raises an early warning flag for our research team because Silver has continued to trade below $18 \u2013 and well below recent highs near $20.<\/p>\n

The price disparity between Gold and Silver is currently greater than 200% based on our proprietary modeling system.\u00a0 Remember, anytime this disparity level is greater than 30% to 60% and Gold breaks out in a rally, Silver will break to the upside within just a few months.<\/p>\n

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The second stage rally in Silver, the real money-maker, will come when investors pile into Silver and Silver Miners as the breakout in Silver becomes explosive.\u00a0 The time to get into this trade is\/was now or 4 months ago.\u00a0 Still, there is plenty of opportunity for skilled traders right now because the breakout move in Silver and Silver Miners has not really begun yet.<\/p>

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The first big upside move in Silver and Miners will be to attempt to move higher and target recent resistance.\u00a0 Resistance in Silver is currently near $19.70 and $21.00.\u00a0 This means any move above $19.75 (or higher) where the price of Silver fails to move above $22 or $23 would constitute a \u201cStage 1 Base Advancement\u201d.<\/p>\n

After this move is complete, a \u201cBreakout Stage\u201d price move will take place.\u00a0 This may be where Silver prices advance from the $21 to $23 level up towards the $28 to $32 price level.\u00a0 This upside price advance breaches the Stage 1 resistance and attempts to establish new support for a continued Stage 2 advance.<\/p>\n

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Remember, the current disparity level is just over 200% between Gold and Silver.\u00a0 If Gold continues to rally higher and Silver attempts to break higher, attempting to narrow the disparity level, then Silver will (at some point) enter a near parabolic upside price move above $36 to $40.\u00a0 Our researchers believe this may happen before June or July 2020.<\/p>\n

This incredible opportunity is currently setting up for skilled traders.\u00a0 Believe it or not, while Silver continues to trade below $18 per ounce and global investors are focusing on US stocks, Emerging Markets, and Gold, Palladium and others, this setup in Silver may become the biggest investment opportunity of 2020.\u00a0 Sure, Gold may rally 80% to 140% over the next 12 to 24 months.\u00a0 Palladium may rally even higher.\u00a0 If Silver does what we expect it to do once this setup\/trigger really breaks open, Silver could rally 500%+ over 12 to 24+ months on an incredible upside disparity reversion move.<\/p>\n

This last chart highlights why we believe this setup in Silver should not be ignored.\u00a0 In 2005, the rally in Silver as a result of this Disparity trigger resulted in Silver reaching a 38% higher peak than Gold.\u00a0 In 2009, the same Disparity trigger prompted Silver to rally to levels nearly 300% higher than the peak in Gold prices.\u00a0 If Gold rallies to levels above $2800 to $3100, which is our expectation, and this Disparity trigger prompts an upside move in Silver, we believe Silver could rally to levels 200% to 400% (or more) higher than Gold prices.\u00a0 By our estimates, that would put Silver prices above $90 to $95 per ounce \u2013 possibly much higher.<\/p>\n

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Take advantage of any opportunity you have to position your portfolio for this setup and be patient.\u00a0 The upside breakout in Silver happens like a train leaving the station.\u00a0 Slow and steady at first, then building momentum, then finally running at top speed.\u00a0 Each time this Disparity trigger sets up and executes, Silver starts a moderate move higher at first, then explodes to the upside as Gold continues to rally higher.\u00a0 That last explosive move is why Silver reaches peaks that are substantially higher (in percentage terms) than the peaks in Gold.<\/p>\n

Please pay attention to our research team\u2019s efforts to help you create greater success and find great trades.\u00a0 Take a minute to visit Technical Traders Ltd. to learn how we can assist you in 2020 and help you build wealth, attain greater success and stay ahead of these bigger market moves.<\/p>\n

As a technical analysis and trader since 1997 I have been through a few bull\/bear market cycles, I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive\/life-changing if handled properly.<\/p>\n

Join my\u00a0Wealth Building Newsletter<\/strong>\u00a0if you like what you read here and ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own.<\/p>\n

Chris Vermeulen
\n TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

NOTICE: Our free research does not constitute a trade recommendation, or solicitation for our readers to take any action regarding this research.\u00a0 It is provided for educational purposes only.\u00a0 Our research team produces these research articles to share information with our followers\/readers in an effort to try to keep you well informed.\u00a0 Visit our web site (www.thetechnicaltraders.com) to learn how to take advantage of our members-only research and trading signals.<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders.com– This, the second part of our Silver research article suggesting Silver may be forming a massive price base in preparation for an explosive upside move, will continue from Part I of this research series. Our research team believes Silver is setting up in a price pattern that may already be \u201cripe\u201d for an […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-163303","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/163303","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=163303"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/163303\/revisions"}],"predecessor-version":[{"id":163304,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/163303\/revisions\/163304"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=163303"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=163303"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=163303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}