Silver weekly uptrend opportunity based On 1.00 Lot Calculation:
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GEOPOLITICS (RUSSIA- UKRAINE WAR): President Vladimir Putin announced an attack on Ukraine on February 24, 2022, days after he recognized two breakaway regions of Russia’s neighbor as independent. Attacks are occurring in Odessa, Mariupol and other locations in Ukraine. Geopolitical tensions usually push investors towards the safe haven Gold and Silver, in an attempt to protect their wealth. Silver could be expected to benefit from the rising Russia- Ukraine tensions.
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RUSSIA TO FACE MORE SANCTIONS THAT COULD LEAD TO FURTHER ESCALATIONS: The EU is still considering sanctions against the Russian oil and natural gas, while Russia says the EU should pay in Russian Rubles if they do not want to stop receiving oil and gas from Russia. This could easily lead to economic recessions across the globe, pushing investor to look for protection with the safe- haven Gold and Silver.
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US APRIL INFLATION CAME IN AT 8.3% (VS. 8.1% EXPECTED), BUT BELOW MARCH’S 8.5% (WHICH WAS THE HIGHEST SINCE 1982). Inflation has continued to rise, moved up by high stimulus packages provided by the US Federal Reserve and the US Congress. A rising inflation usually increases demand for gold as the asset is traditionally considered a store of value, which tends to protect the purchasing power of people’s wealth amid higher inflation.
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ANALYST OPINION: Commerzbank sees silver reaching $26 an ounce in 2022. Goldman Sachs recently said that Silver could go up to $30.
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TECHNICAL ANALYSIS: SILVER FELL TO ITS LONG TERM SUPPORT OF 22.00. Recent sell- off with Silver pushed the price down to its long term support of 22, which has been active since the second half of 2020.
Silver, May 20, 2022
Current Price: 21.80
|
Silver |
Weekly |
|
Trend direction |
|
|
25.00 |
|
|
24.00 |
|
|
23.00 |
|
|
20.70 |
|
|
20.20 |
|
|
19.60 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
SILVER |
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Pivot Points |
||||||
|
Profit or loss in $ |
32,000.00 |
22,000.00 |
12,000.00 |
-11,000.00 |
-16,000.00 |
-22,000.00 |
|
Profit or loss in €2 |
30,261.48 |
20,804.77 |
11,348.05 |
-10,402.38 |
-15,130.74 |
-20,804.77 |
|
Profit or loss in £2 |
25,655.83 |
17,638.38 |
9,620.94 |
-8,819.19 |
-12,827.91 |
-17,638.38 |
|
Profit or loss in C$2 |
40,940.80 |
28,146.80 |
15,352.80 |
-14,073.40 |
-20,470.40 |
-28,146.80 |
1. 1.00 lot is equivalent of 10000 units
2. Calculations for exchange rate used as of 09:00 (GMT+1) 20/05/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
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You may wish to consider closing your position in profit, even if it is lower than suggested one
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Trailing stop technique can protect the profit – Ask your Client Manager for more detail