CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Silver

Market Opportunities - 03/08/2022

03 August, 2022

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 weekly uptrend opportunity based On 1.00 Lot Calculation:

SILVER USE AND MARKET SHARE:

  • SILVER USE: Two thirds of annual demand come from industrial use, and the rest is used for jewelry and investments. According to BullionVault, silver is invaluable to batteries, dentistry, glass coatings, LED chips, medicine, nuclear reactors, photography, photovoltaic (or solar) energy, RFID chips (for tracking parcels or shipments worldwide), semiconductors, touch screens, water purification, wood preservatives and many other industrial uses.
  • MARKET SHARE (PRODUCERS): Mexico is the largest producer holding 22.7% of the markets, while Peru is the second largest with 14% of the markets. China is third on the list with 13.8% of the global production, while Chile takes up 6.00% of the markets. Russia holds 5.4% of total market share.
  • MARKET SHARE (CONSUMERS): The five largest silver consumer in the world are India, USA, UK, Germany and China.
  • EXPECTATIONS FOR SILVER (2022): Metals Focus forecasts a 5% rise in global silver demand due to further structural advancements in industrial fabrication, which is expected to achieve another record high in 2022. Jewelry and silverware demand could continue their post-pandemic recovery this year.

ANALYSIS:

  • EVENTS: CHINA TO START MILITARY DRILLS AROUND TAIWAN ON AUGUST 4 TO AUGUST 7. REASON: US HOUSE SPEAKER NANCY PELOSI VISITS TAIWAN. Chinese drills amount to a blockade of Taiwan's air and sea space. China also banned more imports from Taiwan (on other foods: fruit, fish amongst them). China also summoned the U.S. ambassador in Beijing. Taiwan's cabinet on Wednesday said the military has increased its alertness level.
  • US ECONOMY TECHNICALLY IN RECESSION: US GDP (Q2) -0.9%. After a first quarter negative reading of 1.6%, Q2 came in negative too, at -0.9%. Two quarters, consecutive, negative marks a technical ECONOMIC RECESSION.
  • EVENT (Wednesday, August 10th, 13:30 GMT+1) U.S. INFLATION FOR JUNE ROSE TO 9.1% from 8.6% in May, the highest in 40 years. Inflation remains strong despite the U.S. Federal Reserve’s latest attempts to reign it in with higher rates. Higher inflation usually increases demand for Gold as the asset is traditionally considered a store of value.
  • EVENT: (Friday, August 5th, 13:30 GMT+1): U.S. NON-FARM PAYROLLS AND UNEMPLOYMENT RATE (July). Non-Farm Payrolls are expected to fall to 250,000 from 372,000 in June and the Unemployment Rate is forecast to remain unchanged at 3.6%.
  • U.S. FEDERAL RESERVE RAISED INTEREST RATES TO 2.50% FROM 1.75% (ITS HIGHEST SINCE JUNE 2019). The markets now price in 70% probability that the U.S. central bank will raise rates by 0.50% point on September 21, which could increase volatility in the Silver market.
  • RECENT PRICE ACTIONS: SILVER HAS HAD A DOWNWARD CORRECTION OF AROUND 44% OVER THE PAST FOUR MONTHS (FROM $26.197 TO $18.119). Silver tested its lowest price since June, 2020 ($18.723).
  • ANALYST OPINION: Commerzbank sees silver reaching $26 an ounce in 2022.

Silver, August 3, 2022
Current Price: 19.75

Silver

Weekly

Trend direction

UP

Resistance 3

25.00

Resistance 2

23.50

Resistance 1

22.00

Support 1

18.00

Support 2

17.50

Support 3

17.00

Example of calculation base on weekly trend direction for 1.00 Lot1

Silver

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

52,500.00

37,500.00

22,500.00

-17,500.00

-22,500.00

-27,500.00

Profit or loss in €2

50,322.54

35,944.67

21,566.80

-16,774.18

-21,566.80

-26,359.43

Profit or loss in £2

43,316.12

30,940.08

18,564.05

-14,438.71

-18,564.05

-22,689.39

Profit or loss in C$2

67,539.15

48,242.25

28,945.35

-22,513.05

-28,945.35

-35,377.65

1. 1.00 lot is equivalent of 10,000 units

2. Calculations for exchange rate used as of 09:07 (GMT+1) 03/08/2022

Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client 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 Client Manager for more detail
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