MID-TERM TREND: UP
HISTORCIAL CHANGES IN SILVER PRICES
|
Year |
December-31 |
January-31 |
Percentage Change |
|
2015 |
$15.69 |
$17.23 |
+9.82% |
|
2016 |
$13.83 |
$14.24 |
+2.96% |
|
2017 |
$15.88 |
$17.50 |
+10.20% |
|
2018 |
$16.90 |
$17.33 |
+2.54% |
|
2019 |
$15.45 |
$16.01 |
+3.62% |
|
2020 |
$17.84 |
$18.02 |
+1.01% |
|
Average Price Increase |
+5.03% |
||
The table above tells us that silver prices historically rose January. After calculating the average price changes over the same period starting 2015 we have obtained expected price changes of 5.03%.
However, please note that past performance does not guarantee future results.
- The U.S. Congress approved an $900 billion coronavirus aid package
The US Congress approved on December 21, 2020 an $900 billion coronavirus aid package. It will include direct payments of up to $600 per adult, enhanced jobless benefits of $300 per week, roughly $284 billion in Paycheck Protection Program loans, $25 billion in rental assistance, an extension of the eviction moratorium and $82 billion for schools and colleges. With the new US Congress coming in power, the Democrats will be expected to push for bigger stimulus checks than current ones of $600. The new money coming in from the latest bill could devalue the US currency due to inflationary pressure and high money supply, which in turn could have a positive impact on dollar-denominated Gold and Silver.
- US Federal Reserve Monetary Policy Meeting (December 15-16)
In addition, the US Federal Reserve (December 16 meeting) said it will maintain its “POWERFUL” massive asset purchasing programme (monthly 120 billion dollars) until it sees substantial further progress in employment and inflation. The Fed did not announce policy changes, which was a bit of disappointment to some investors. The dot plot projections on interest rates said that 0.00%-0.25% rate should stay in place until the end of 2023.
Graph: (Silver, Daily)
Current Price: 27.27
|
Silver |
Mid-Term |
|
Trend direction |
|
|
32.00 |
|
|
30.50 |
|
|
28.90 |
|
|
25.70 |
|
|
24.80 |
|
|
24.00 |
Example of calculation based on trend direction for 1.00 Lot*
|
SILVER |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
47,300.00 |
32,300.00 |
16,300.00 |
-15,700.00 |
-24,700.00 |
-32,700.00 |
|
Profit or loss in €** |
38,514.15 |
26,300.36 |
13,272.32 |
-12,783.77 |
-20,112.04 |
-26,626.06 |
|
Profit or loss in £** |
34,554.55 |
23,596.45 |
11,907.81 |
-11,469.48 |
-18,044.34 |
-23,888.67 |
|
Profit or loss in C$** |
59,993.43 |
40,968.03 |
20,674.27 |
-19,913.25 |
-31,328.49 |
-41,475.37 |
* 1.00 lot is equivalent of 10000 units
** Calculations for exchange rate used as of 10:48 a.m. (GMT) 04/01/2021
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 details