Silver Simplified: Chart Insights & Trade Idea
SILVER Greetings everyone,
I like when charts are easy to read—it helps make trading decisions easier.
On the Chart today, I have XAGUSD (Silver/US Dollar).
The price of XAGUSD is currently: 31.18oz.
What Are the Benefits of Silver
Silver offers several advantages for investors and traders alike:
1. Hedge Against Inflation:
Like gold, silver is often viewed as a store of value, making it an effective hedge against rising inflation and currency devaluation.
2. Industrial Demand:
Silver is used extensively in industries such as electronics, renewable energy (solar panels), and medical applications, ensuring consistent demand.
3. Accessibility:
Silver is more affordable than gold, making it an ideal choice for small-scale investors or those looking to diversify.
4. Liquidity:
Silver can easily be bought and sold in various forms, including ETFs, futures, and physical bullion.
5. Volatility Opportunity:
Silver tends to be more volatile than gold, offering traders higher profit potential during market swings.
Does Silver Rise During Inflationary Periods?
Yes, silver often rises during inflationary periods. When inflation erodes the value of fiat currencies, investors flock to hard assets like silver and gold to preserve their purchasing power.
Key reasons silver performs well during inflation:
• Weaker Currency Value: Inflation typically weakens currencies, driving up the price of dollar-denominated assets like silver.
• Increased Demand for Safe-Haven Assets: Investors seek alternatives to cash, and silver, being more affordable than gold, often sees increased demand.
• Industrial Applications Benefit: In an inflationary environment, industrial activity can also contribute to silver’s rise due to higher commodity prices across the board.
Technical Analysis 💡
Silver / XAGUSD recently broke out of a downtrend and is showing bullish continuation.
Bullish continuation is seen when price reclaimed the $30.17 level where it bounced / wicked multiple times.
Volume analysis
Also notice the empty volume pocket between
The peak of the volume and where it touched the green box highlighted at 30.172oz. Can be seen when zoomed in on the 45m chart.
Trade Entry
We have technically missed the most optimal entry point. However never forget there is always opportunity to make money in the market 💴.
Trade setup look for re-entry on any strong break above $31.242 targeting $32.25.
Best,
C Lemard
#kissmethod #silver #commodities #trading #xau #gold
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