To The Moon

I have not been sharing anything recently as I am still in the middle of my one month plus holidays. Thought that I will shared something quickly but my finger and brain has a better idea... I was supposed to share a P/L picture but as I was dosing off, my finger had accidentally clicked on "share" button [Facepalm]  

Might as well... will just add a brief comment to clarify my idea. 

The above is a chart of the movement in price of silver. After hitting a double bottom around $29.1, the price of silver has turned back up. The price recently cleared resistance line at $30.3, moving towards near term target of $31.5.

For all those people who are used to the giddy gains observed in speculative bets of bitcoin and other cryptocurrencies, AI, and latest quantum computing, this $1.2 target or a 4% move might not generate the type of excitement for the young and bold. However, a short term 4% movement in precious metal pricing is still significant.

The above is a chart of AGQ, a silver related ETF that I had shared many times previously. It doubled with the price of silver. It is useful when the price of silver is moving up, since the gain is doubled. It is obviously risky if the silver price is moving down.

When you look at its trend, it is following that of silver, forming a double bottom and reversing upward... in the short term.

The MACD charts for both, a secondary chart located below the main chart, are showing  reversing movements too. If the reversal is fulfilled, their runways appear substantial. The target price is around $40 in the short term.

I have added another position recently to go with all my previous positions, which I have not sold any so far.

I am bullish on precious metals group, especially silver and gold. For those not in the space, you might not know that they are very different. indeed, both gold and silver add as a store of value and serve as inflation hedge. This is where the similarities stop. For silver, it's increasingly importance as an industrial metal might result in a price squeeze and a big tailwind for the price to go much higher in the long run.

A word of caution and what I am waiting for...

The above is a middle term or weekly trend of AGQ. All is not rosy... as yet. Although the uptrend of higher highs and higher lows are beginning to form, the trend must safely cross the initial target price of $40 to confirm a possible longer term uptrend is intact. If it fails to clear $37 cleanly, a mid term consolidation between $33-$36 might take place. It takes a lot of patience in today's fast pace market to keep interest going.

A couple of uncertainty ahead in the near term that includes a new US President called Donald Trump likely will act as a tailwind to push the prices of precious metals group higher and silver is bound to benefit. 

No matter bitcoin, silver and gold are here to stay! [Cool]  

@LMSunshine @TigerStars @MillionaireTiger