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Why Silver Price 'Should Resume Upwards Path

Commodities / Gold and Silver 2022 Nov 27, 2022 - 08:48 PM GMT

By: Clive_Maund

Commodities

Expert Clive Maund reviews silver's 4-month, 1-year, and 5-year charts to tell you where he believes the future is headed for this precious metal.

When the dollar broke down over a week ago, silver joined gold in breaking higher, as we can see on its 4-month chart below, and now we are seeing a normal post-breakout reaction as the dollar rallies somewhat to relieve the extreme condition that resulted from its steep lunge.

Once the dollar’s relief rally is done, silver should resume the upward path.


On the 1-year chart, we can see that silver has started to emerge from a base that formed in July that is probably best categorized as a Triple Bottom, although it is a hybrid pattern.

How it copes with the considerable resistance in this zone, and it's still rather unfavorably aligned, moving averages depends to a large extent on how the dollar performs going forward and the course of interest rates — both are believed to have reversed to the downside, so the outlook for silver is favorable.

On the 5-year chart, we can see that silver has essentially been “in the doldrums” since its mid-2020 spike, and it is the more robust rise in the dollar and interest rates this year that eventually led to the support at the US$22 level failing.

Silver has been underperforming gold since early 2021, which is normal when speculative interest in the sector wanes and in the early stages of a new bull market which is where we are believed to be now, gold tends to outperform silver because it takes high and rising prices to attract broader investor interest and the arrival of speculators and we are still a long way from that.

So in the early stages of a new sector, bull market gold and gold stocks are generally the best places to be.

Much of what is written in the parallel Gold Market update, especially about the dollar, applies equally to silver and does not need to be repeated here, which is why the Silver Market update is shorter.

CliveMaund.com Disclosure

Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.

Disclosure: 1) Statements and opinions expressed are the opinions of Clive Maund and not of Streetwise Reports or its officers. Clive Maund is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Clive Maund was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. 2) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports. 3) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Charts provided by the author.

CliveMaund.com Disclosure: The above repr0esents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.


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