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Silver

Market Opportunities - 29/07/2020

29 July, 2020

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

Silver uptrend opportunity based On 1.00 Lot Calculation:

  • Later on Wednesday (July 29), the US Federal Reserve will deliver its latest monetary policy decision (19:00 GMT+1), while Chair Jarome Powell will hold a press conference at 19:30 GMT+1. The U.S. Federal Reserve said on Tuesday (July 28) it will extend several of its lending facilities through the year-end. The extensions apply to those facilities that were due to expire on or around September 30.
  • Silver rose above the mark of 26.0 on July 28 to test its highest rate since 2013 (26.166). Silver remained on the upside as demand for safe- haven assets continued to rise supported by rising financial market uncertainties due to growing number of coronavirus cases worldwide. Many markets participants fear over possible implementations of partial lockdown measures across many countries, which in turn could humper the ongoing global economic recovery. To this end, investors could be expected to flock to the safe- haven assets such as Gold and Silver, which could lead to higher Silver prices.
  • Meanwhile, tensions between the US and China rose after the US told China to close its consulate in Houston, US. In return, China told the US to close its consulate in Chengdu, China.
  • From a technical perspective, Silver could be expected to remain on the upside as it managed to break through its resistance (psychological) level of 20.00. In addition to that, the monthly Relative Strength Index continued to head up towards the overbought threshold of 80.0, meaning that the bulls are still in control, suggesting an extension in Silver’s price rally.

Silver, July 29, 2020
Current Price: 24.180

Silver

Weekly

Trend Direction

UP

Resistance 3

29.000

Resistance 2

27.500

Resistance 1

26.160

Support 1

22.214

Support 2

21.000

Support 3

19.500

Example of calculation base on weekly trend direction for 1.00 Lot*

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss Short in $

48,200.00

33,200.00

19,800.00

-19,660.00

-31,800.00

-46,800.00

Profit or loss Short in €**

41,042.58

28,270.00

16,859.82

-16,740.61

-27,077.89

-39,850.48

Profit or loss Short in £**

37,249.99

25,657.67

15,301.86

-15,193.67

-24,575.72

-36,168.04

Profit or loss Short in C$**

64,366.28

44,335.28

26,440.92

-26,253.96

-42,465.72

-62,496.72

* 1.00 lot is equivalent of 10000 units
** Calculations for exchange rate used as of 8:14 am (GMT+1) 29/07/2020
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Senior Account Manager for more details

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