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:
- 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 (SEPTEMBER 13, TUESDAY AT 13:30 GMT+1): US INFLATION FOR AUGUST (EXPECTED: 8.1%). This is down from July’s 8.5% and June’s 9.1%.. 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 Silver as the asset is traditionally considered a store of value. US SENATE PASSED “INFLATION REDUCTION BILL” WORTH $430 BILLION DOLLARS (part of Biden’s stimulus programmes), aimed at fighting climate change, lower drug prices higher corporate taxes. This still could prove inflationary.
- 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, September 12, 2022
Current Price: 19.40
|
Silver |
Weekly |
|
Trend direction |
|
|
25.00 |
|
|
23.40 |
|
|
21.50 |
|
|
17.40 |
|
|
15.60 |
|
|
13.90 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
Silver |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
56,000.00 |
40,000.00 |
21,000.00 |
-20,000.00 |
-38,000.00 |
-55,000.00 |
|
Profit or loss in €2 |
55,145.25 |
39,389.46 |
20,679.47 |
-19,694.73 |
-37,419.99 |
-54,160.51 |
|
Profit or loss in £2 |
47,132.69 |
34,188.03 |
17,948.72 |
-17,094.02 |
-32,478.63 |
-47,008.55 |
|
Profit or loss in C$2 |
72,744.00 |
51,960.00 |
27,279.00 |
-25,980.00 |
-49,362.00 |
-71,445.00 |
1. 1.00 lot is equivalent of 10,000 units
2. Calculations for exchange rate used as of 09:07 (GMT+1) 12/09/2022
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