Posted on 30 December 2013 with no comments from readers
It’s always useful to look at the technical charts when making an investment. Close up price movements can be very deceptive about longer term trends. You need to stand back a bit to get the proper perspective on a market.
Right now the 14-year price chart for silver is signaling a good entry point, according to chartist Clive Maund:
In his latest Silver Market Update says: ‘On the 14-year chart silver’s retracement from the Spring 2011 peak looks like a normal healthy correction and it appears to be about to reverse to the upside in exactly the place you would expect it to, from the zone of strong support arising from extensive trading from early 2008 through mid-2010 in the $17.50 – $20 price range, and from the support line of its major uptrend channel, which is coming into play not far beneath.
‘In recent months it looks like it has been marking out an intermediate base pattern at the support level. Volume indicators are positive, which is a positive sign, with the Accum-Distrib line holding up very well on the decline.’
There are still some risks here: ‘A short term dip back to or a little below the support line could occur, but would likely be followed by a rapid recovery.’ Of course nothing is for certain but this does support the strong fundamental case for silver we have made elsewhere (click here).
Nowadays, the investors can deposit their fund in silver ad earn more profit. Because the prices of silver particles are getting increased day by day. So, the traders can use this moment now and make the best of it for their bright future. The trading softwares like Bitcoin code, Bitcoin trader, Ethereum code and HB Swiss are now available as mobile applications. So, we can use those softwares very easily through smartphones. Bitcoin Code trading app is a useful application for the new traders because it has some educational tutorial videos which will teach the traders how to do trading effectively.
Of course, nobody is going to believe us because of the long correction in the shiniest of metals. If you are a contrarian investor then this is also a very positive factor. As Clive Maund remarks: ‘Public opinion is still quite heavily negative, which is a strong indication that a substantial rally is brewing in silver.’
Anybody who is convinced might like to grab a copy of our next monthly newsletter which will feature two articles on precious metal investments for 2014 (click here).