Silver Weekly Special Report based on 1.00 Lot Calculation:
EVENTS:
- THURSDAY, DECEMBER 19 at 13:30 GMT: U.S. GROSS DOMESTIC PRODUCT - GDP (Q3). GDP measures the quarterly change in all goods and services produced by the economy. A weaker than expected result is generally supportive for silver because it increases the odds for further interest rate cuts by the FED. For the third quarter a growth rate of 2.8% is expected.
US FEDERAL RESERVE HAS PROCEEDED WITH THEIR INTEREST RATE CUT CYCLE:
- BREAKING (DECEMBER 18): FEDERAL RESERVE CUT RATES TO 4.50% FROM 4.75% PREVIOUSLY. The FED has cut the interest rate by 25 bps as expected (from 4.75% to 4.50%). The bank has so far cut rates three times this year, slashing rates from initial 5.5% in September down to the current 4.50%. Lower interest rates exert positive pressure on Silver.
SEASONAL TRADE: DECEMBER - JANUARY (2014- 2024)
- STATISTICS: SILVER ROSE 6.98% ON AVERAGE BETWEEN DECEMBER AND JANUARY (2014- 2024)
Data Source: MetaTrader 4 Platform
Please note that past performance does not guarantee future results
TECHNICAL ANALYSIS:
- STRONG SUPPORT AT $30. Silver has maintained strong support at $30 since May 2024. Since then, Silver would resist staying below $30 as bargain hunters come back to send price up back above $30.
ANALYST EXPECTATIONS
- UBS: The bank targets a price of $36.
- CITIGROUP: The bank targets a price of $40.
- JP Morgan: The bank targets a price of $34.
PRICE ACTION
- ALL-TIME HIGH PRICE: $49.80. Silver jumped to $49.80 in 2011, during the debt crisis in Europe. Currently, Silver trades around $29.50 and if full recovery is made this could offer an upside potential of around 65%. However, the price could also decline.
Silver, December 19, 2024
Current Price: 29.50
|
SILVER |
Weekly |
|
Trend direction |
|
|
49.8 |
|
|
40.0 |
|
|
31.2 |
|
|
28.0 |
|
|
27.5 |
|
|
27.0 |
Example of calculation based on trend direction for 1.00 Lot*
|
SILVER |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
203,000.00 |
105,000.00 |
17,000.00 |
-15,000.00 |
-20,000.00 |
-25,000.00 |
|
Profit or loss in €2 |
194,994.70 |
100,859.33 |
16,329.61 |
-14,408.48 |
-19,211.30 |
-24,014.13 |
|
Profit or loss in £2 |
160,424.81 |
82,978.35 |
13,434.59 |
-11,854.05 |
-15,805.40 |
-19,756.75 |
|
Profit or loss in C$2 |
292,189.33 |
151,132.41 |
24,469.06 |
-21,590.34 |
-28,787.13 |
-35,983.91 |
1. 1.00 lot is equivalent of 10.000 units
2. Calculations for exchange rate used as of 10:30 (GMT) 19/12/2024
There is a possibility to use Stop-Loss and Take-Profit.
- You may wish to consider closing your position in profit, even if it is lower than suggested one.
- Trailing stop technique could protect the profit.