MID-TERM TREND: UP
HISTORCIAL CHANGES IN SILVER PRICES
|
Year |
December-15 |
January-31 |
Percentage Change |
|
2014-2015 |
$ 17.007 |
$ 17.227 |
+1.29% |
|
2015-2016 |
$ 13.654 |
$ 14.232 |
+4.23% |
|
2016-2017 |
$ 16.784 |
$17.500 |
+4.27% |
|
2017-2018 |
$ 15.864 |
$ 17.322 |
+9.19% |
|
2018-2019 |
$ 14.515 |
$ 16.010 |
+10.30% |
|
2019-2020 |
$ 16.930 |
$ 18.017 |
+6.42% |
|
2020-2021 |
$ 23.802 |
$ 28.572 |
+20.04% |
|
Average Price Increase |
+7.96% |
The table above tells us that silver has historically performed well in the period between December 15 and January 31. After calculating the average price changes over the same period starting 2014-2015, we found an average increase of 7.96%.
However, please note that past performance does not guarantee future results.
- Safe-Haven Demand Expected Due To Covid-19 Worries: The Emergence Of the OMICRON Variant
Virus cases are climbing in Europe and the U.S., while U.K. authorities will temporarily ban flights from some southern African countries and put travelers in quarantine over worries about the new strain. Scientists say OMICRON carries a high number of mutations in its spike protein, which plays a key role in the virus’ entry into cells in the body. According to UK officials, mutations are likely to evade immune response from vaccine and prior infections.
- US Inflation at the highest since 1990: 6.2%
Inflation in the US has risen to the highest since 1990. The data for October showed a figure of 6.2%, much higher than the Fed’s target of 2.00%. Gold and Silver to be high in demand as they have been traditionally used by investors to protect from high inflation.
- US Federal Reserve Monetary Policy Meeting (December 15)
The Federal Reserve has already started to taper their massive stimulus programme worth 120 billion dollars of bond purchases each month. The bank is expected to appear worried in mid-December due to Omicron, the new COVID variant which could be able to evade current vaccines. With that in mind, the bank might appear dovish and push back expectations on faster stimulus tapering or interest rate hikes next year.
Graph: (Silver, Daily)
Current Price: 22.60
|
Silver |
Mid-Term |
|
Trend direction |
|
|
27.50 |
|
|
25.90 |
|
|
24.30 |
|
|
21.00 |
|
|
19.60 |
|
|
18.60 |
Example of calculation based on trend direction for 1.00 Lot*
|
SILVER |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
49,000.00 |
33,000.00 |
17,000.00 |
-16,000.00 |
-30,000.00 |
-40,000.00 |
|
Profit or loss in €** |
43,334.84 |
29,184.69 |
15,034.54 |
-14,150.15 |
-26,531.53 |
-35,375.38 |
|
Profit or loss in £** |
36,853.19 |
24,819.49 |
12,785.80 |
-12,033.69 |
-22,563.18 |
-30,084.24 |
|
Profit or loss in C$** |
62,535.76 |
42,115.92 |
21,696.08 |
-20,419.84 |
-38,287.20 |
-51,049.60 |
* 1.00 lot is equivalent of 10000 units
** Calculations for exchange rate used as of 13:00 (GMT) 01/12/2021
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