over the last couple months, first majestic has gone into a falling triangle (wedge).
i expect this to break out to the upside real soon.
watch out if it breaks down. but this should be a signal about the direction of silver.
Holy Cow bear, that's quite a chart!
Earlier this year, we had the breakaway gap higher just above 15 on record volume...........obviously some sort of wildly bullish news, immediately followed by a gap and crap buying exhaustion that was especially powerful as it put in an island trading bar at the top of a spike higher.
We then quickly tested the top of the upside breakout area of the break away gap.....which held, in fact 3 times its held...(and we are down there again now).
This was followed by a test higher to the bottom of the exhaustion gap, which failed and now, we are seeing a tightening range(with lower volume as you might expect) with well defined support, just above 15, which has been tested 3 times and is just above the original break away gap.............which is still holding.
One could also draw in trendlines and recent prices may be violating the uptrend channels, while possibly establishing a new downtrend channel. WOW, this chart has a pot pourri of patterns and signals.
I have watched silver ever since I became a physical owner
IMHO silver is a manipulated market with JPM the biggest manipulator to profit
Does it not seem strange that JPM always seems to come out on the profit end
Until actual physical silver and gold disappears from the bullion retail dealers ability to buy, the market will always be manipulated
Physical silver could become a scarce commodity, and the Green Deal may use more than usual in building solar and other components
Use age may over come the ability for new production as silver is mostly a by product of other mining operations and not the sole revenue for most operations, thus investment will be slow to catch up to increased demand if that happens
Thus IMHO only two possibilities exist for silver to actually increase in price
1: Individuals hoarding small amounts of silver and removing from the bullion banks. Larger investors may take an interest in standing for delivery. if cash is offered in lie of physical settlement then it is game on
2: The Green Deal night just cause an increase in demand for solar panels which will be more demand than production
I think it will likely take a combination of 1 and 2 to really cause silver to increase in price of any amount
Silver paper trading is not what I would want to bet against the likes of JPM. You may be the lucky minority of winners but trust me, JPM makes billions from the unlucky investors of paper silver
Silver does have many industrial uses. Jewelry and tableware not much there. There is too much phys above ground IMHO. If it gets back to $40 I think many hoarders would start to cash out. Same with gold above $2000 again. The main thing gold has going for it is the lust of 1b Chinese and 1b Indians to hold it.
JPM does have a market advantage; they have stacks of silver bars sitting in vaults. Its win win for them because they can do a delta neutral spread between short calls and short puts thereby generating a stream of premium with the only risk silver goes to $1 or they are asked to deliver it at some bubble high price. In the later scenario they could buy it back for less incrementally. Miners are mostly not stackers. There is a private club of bullioniers and we ain't in it.
I not here to suck the air out of the room; AG was up 48% in 2020, that easy.
Thanks for the wonderful comments.........keep them coming.
looks lke it tried to break down, but it may be a fakeout.