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Downtrend

Script is in downtrentThe price of precious metals and the US dollar tend to move in opposite directions. In finance speak, they are 'inversely co-related'. This means if the dollar strengthens, silver is unlikely to do well. And that is exactly what has happened in this year. The dollar is a bit of a juggernaut at the movement. It's trading close to its 20-year high. In fact, so strong is the dollar these days that even the euro, which is usually the stronger currency, has fallen to near parity against the dollar. The strength of the dollar is due to money flowing in to the US from most other countries due to fears of a global recession. In a recession, investors tend to park their funds in the perceived safe have of US treasury bonds. Fears of a recession is rampant in global markets right now. This is keeping the dollar strong. # High Inflation Leading to Higher Interest Rates Another reason for the weakness in silver (gold too as gold price is falling), is the sharp rise in interest rates around the world. The US central bank, the US Federal Reserve, is pursuing an aggressive monetary policy to get inflation under control. The Fed has already raised interest rates and will continue to do so in the weeks and months ahead. This aggressive rate hike policy is also supporting the dollar and has triggered fears of the US sliding into recession. Higher interest rates hurt sentiment in precious metals because gold and silver don't earn any interest while investors can earn higher interest on safe government bonds. Usually, high inflation is positive for gold and silver prices, but this time higher interest rates have spoiled the party. # Industrial Demand is Under Pressure In financial markets, silver is treated as a part precious metal and part industrial metal. This is because about 60% of silver demand is from industries. Silver is considered to be an indispensable industrial metal. It has wide-ranging uses in industries - photography, electronics, IoT, home appliances, textiles, medicine, dentistry, solar photovoltaic cells, LEDs, RFID chips, nuclear reactors, EV batteries, soldering and brazing alloys, water purification, wood preservatives, and more. During a recession, demand for industrial goods reduces all over the world. Silver is not immune from this slowdown. Whenever the global economic growth seems to be under pressure, silver prices take a hit. And this is what we are seeing in the market today. Also, the economic slowdown in China, due to harsh lockdowns, has made the situation worse for industrial demand. Thus, silver prices are likely to be subdued in the short term. # Outflows from Silver ETFs In India, silver ETFs are still a relatively new investment vehicle. But in the west, they are very popular. During covid times, these silver ETFs witnessed record inflows. However, the weak sentiment in the market has lead to a reversal in 2022. Buyers have turned into sellers and are withdrawing their money. Of the many market forces driving the price of silver higher, the investments in silver ETFs was a big one. It created a strong bullish sentiment in silver over the last 2 years. Thus, if sentiment turns more negative than it is now, there could be more downside for silver at least in the short term. Although, the outlook should improve over time. Ace trader and long-time silver bull, Vijay Bhambwani, believes the silver bull market is still on. He explained his view in this video - Bull Market in Silver is Still on. You can also check out Vijay's YouTube playlist on silver. If you're thinking of taking advantage of falling prices by investing in silver now, we suggest this reading this helpful guide - How to Invest in Silver. You can track the price of silver here.
MCX:SILVERMIC1!Short
by Devjitrader
What we see by analyzing the pharma index with 2 theories.Hey.. What do we get if we analyse one chart with two different theories ? Is it a good idea ? We use different techniques and methods to analyse a chart. Some traders use chart patterns, some use moving averages and others use any other technique. We all did the analysis to determine the trend of that instrument. What if we use two different theories for the analysis ? It will give us a more accurate view for that instrument. Lets check the analysis Nifty Pharma Index Daily Chart by 2 different theories of Chart Patterns and Exponential Moving Averages. Chart Pattern A symmetrical triangle pattern appears on the chart. And today we see the Breakdown of the pattern. The breakdown of the pattern shows the weakness of the index. Exponential Moving Averages For this we use four exponential moving averages of 20, 50, 100 and 200 periods. We start from the 20th of Jun 2022 when the price is below the all exponential moving averages. From that day the price started its upward move and it crosses all ema's one by one and finally it reached at 200ema on 5th of Aug 2022. During the period of 3 months the all 4 ema's come close to each other. But the price has failed to cross the 200 ema and it starts its downward move. From 22nd of Aug 2022 the price tested its 20 ema and 50 ema but has failed to hold them. Finally on the 16th of Sep 2022 the price closed with a big red candle. The price traded below to all 4 ema's shows the weakness and start of a downtrend. Conclusion: From both theories we see the weakness in the pharma index. So, the stocks of the sector show the bearish move in the coming days. This explanation is for educational purposes. My only intention is to share my style and techniques of analysis. Thanks
NSE:CNXPHARMAShort
by ssvirdi
2
STAR | TREND REVERSAL TRADEPOINTS TO NOTE BEFORE INITIATING LONG: ------------------------------------------------------------------------------ 1. Star Pharma has been in a continuous downtrend for more than 6 months forming Lower Highs & lows. 2. A breakout of the downward channel occurred on the 24th of June with record volumes seen of the last 6 months. 3. Now a shift to an upward channel is seen with HH, HL, indicating reversal. 4. Trade is based on a minor Trendline breakout in uptrend. The trade is as follows: - Entry above 357.5 - SL 339.45 - Targets of 383, 402
NSE:STARLong
by Divergent_trader