SILVER weekly uptrend opportunity based On 1.00 Lot Calculation:
- EVENT: Federal Reserve Monetary Policy Meeting (Wednesday, April 28 at 19:00 GMT). Fed Chair Jerome Powel will speak at 19:30 GMT. The Fed policymakers are expected to confirm that the Fed will keep interest rates unchanged close to 0.00% until the end of 2023. They are also expected to confirm that they will continue to purchase 120 billion dollars of bonds per month in 2021 (equivalent to 1.44 trillion dollars per year). Given current evidence of rising inflation in the US, the addition monetary stimulus could affect negatively the US dollar, while Silver and Gold prices could continue to rise.
- US FISCAL STIMULUS: US President Joseph Biden signed the $1.9 trillion stimulus into law on March 11. In December 2020, the U.S. Congress approved an $892 billion coronavirus aid package. Infrastructure bill that could be worth around 2 trillion dollars has been also discussed.
- MORE THAN 3 TRILLION DOLLARS TO BE INJECTED INTO THE U.S. ECONOMY IN 2021, INFLATION TO RISE: Increased money supply in the U.S. is expected to increase upward pressure on inflation, which could grow hot later this year. Therefore, the US Dollar’s purchasing power could fall, while investors could be expected to seek protection with the safe haven Gold. To this end, the markets could still expect the Gold prices to recover.
- INDUSTRIAL DEMAND FOR SILVER TO RISE IN 2021: Global silver demand is forecast to reach 1 billion oz in 2021, rising 11% year-on-year and marking an eight-year high, largely driven by industrial end-users. Industrial demand is projected to increase by 9% year-on-year to 510 million oz this year (source: The Silver Institute), while the rollout of 5G technology in consumer electronics is notably expected to increase silver demand.
- ANALYST OPINION: Goldman Sachs has kept its Silver Forecasts to $33 per ounce.
SILVER, April 16, 2021
Current Price: 25.70
|
SILVER |
Weekly |
|
Trend direction |
|
|
31.00 |
|
|
29.50 |
|
|
28.00 |
|
|
23.50 |
|
|
22.00 |
|
|
21.00 |
Example of calculation base on weekly trend direction for 1.00 Lot*
|
SILVER |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
53,000.00 |
38,000.00 |
23,000.00 |
-22,000.00 |
-37,000.00 |
-47,000.00 |
|
Profit or loss in €** |
44,265.16 |
31,737.28 |
19,209.41 |
-18,374.22 |
-30,902.09 |
-39,254.01 |
|
Profit or loss in £** |
38,459.86 |
27,575.00 |
16,690.13 |
-15,964.47 |
-26,849.34 |
-34,105.92 |
|
Profit or loss in C$** |
66,321.02 |
47,550.92 |
28,780.82 |
-27,529.48 |
-46,299.58 |
-58,812.98 |
* 1.00 lot is equivalent of 10000 units
** Calculations for exchange rate used as of 10:27 a.m. (GMT+1) 16/04/2021
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