Silver: Flirting with chart resistance at Q1 2022 end
01 April 2022 close: Since the Russian invasion of Ukraine Silver has been flirting with chart resistance currently around 24.85. It broke end of February of course but fell back again to continue range trading around this downsloping resistance which connects the January and April 2021 highs. Our metals position and Silver are on a patient hold. We favor the picture of the quarterly chart to push into higher risk over the coming quarters. 3 daily closings above 28.85 should finally push silver towards our long intermediate target of 37.30 which is the highest correction following the initial 50% correction in 2011. Strong Hold.
25 February 2022 close: Silver/USD after 5 weeks is unchanged after a 9% drop into longer term horizontal support and the subsequent recovery into last Thursday. Silver was heavily bid towards 25,60 before dropping sharply and finishing the week at 24.19. The move on Thursday briefly broke the one year resistance line ($25.17) before the subsequent correction into the weekend. The Silver chart picture is broadly similar to Gold with long term risk weight in uptrends and plenty of room to advance and daily in short term correction. We remain fully committed to our Silver allocation with a slight overweight vis a vis gold. No Change.
Silver/USD Risk Weight Position relative to Quarterly, Monthly, Weekly and Daily risk weight data(Previous update in brackets)
|Trend||↑ (↑)||↓ (↑)||↑ (↓)|
|% Risk Weight||33 (22)||64 (52)||39 (73)|
|Total PM Portfolio allocation 50% (40%) breakdown:||Au:12%||Ag:14%||Pt:14%|