Market disruption continues, this time in Silver – Market Overview

Market disruption continues, this time in Silver – Market Overview

The market begins the month of February with a return to risk appetite reflected in rises in the principal North American and European indices.

Market disruption with the massive influx of retail investors in some stocks pushed down by short bets from hedge funds appears to have subsided. Uncertainty arose among large institutional investors who feared losing their dominant position in the market and faced the possibility that regulators could impose more restrictive rules that would affect all participants.

The Silver

Today the focus of attention of these retail operations changes assets and focus on metals, more specifically in Silver, which had lagged behind gold in its last upward movement. It correlates.

Silver experiences a rise close to 10% driven by these purchases and is approaching its resistance level located at $29.86 an ounce. Above this level, it would reach levels not seen since 2013, and from a technical point of view it would open paths towards the levels of $30.45, the 50% Fibonacci retracement of the entire downward section that began from the highs reached in 2011, and $34.89/ounce, the 0.618% decrease in this same section.

The Dollar and the Dollarindex

In this scenario of increased risk appetite that is mainly motivated by the improved expectations regarding the evolution of the pandemic due to the administration of vaccines, despite the problems that the European Union is having with AstraZeneca, and also by economic figures that show some sustainability in the recovery of the economy, such as the manufacturing PMIs, which in the case of Europe rose to 54.8 in January from 54.7 in the previous month, American treasury bonds are once again sold by investors and thus increase yields, which in the case of the 10-year bond stands at 1.08%.

These increases in yields drive the US Dollar, which, in its price against the Euro, breaks the 1.2100 zone down again and is approaching the main support level of 1.2065.

The US Dollar has strengthened against all counterpart currencies. This is mainly reflected in the dollar index that, as we can see in the chart, is forming a bullish reversal pattern with a trigger level in the 91.02 zone close to its current quote.

If this formation is confirmed and a daily close above that level is needed, the theoretical target would be around 92.50, above the 100-day SMA. Since the Dollar index is a weighted index with more than 50% of the weight in its composition of the Euro's price, if this upward breakout indicated by technical analysis occurs, it would coincide with a downward movement of the EUR / USD below its 1.2065 support.

Sources: Bloomberg, Reuters.

Maklumat/penyelidikan ini disediakan oleh Miguel Ruiz (“tpenganalisis penyelidikan”) dan tidak mengambil kira objektif pelaburan tertentu, keadaan kewangan atau keperluan khusus individu. Penganalisis penyelidikan bertanggungjawab terhadap kandungan laporan penyelidikan ini, samada sebahagian atau keseluruhannya, memperakui bahawa pandangan mengenai syarikat dan sekuriti mereka yang dinyatakan dalam laporan ini jelas mencerminkan pandangan peribadi dan pedagang bertanggungjawab sepenuhnya ke atas risiko mereka sendiri.

Penyelidikan yang disediakan bukanlah pandangan JME Financial Services (Pty) Ltd ataupun undangan untuk melabur dengan JME Financial Services (Pty) Ltd. Penganalisis penyelidikan juga memperakui bahawa tiada sebahagian daripada pampasannya, adalah, atau akan, secara langsung atau tidak langsung, berkaitan dengan cadangan atau pandangan tertentu yang dinyatakan dalam laporan ini.

Sehingga tarikh laporan diterbitkan, penganalisis penyelidikan dan pasangannya dan/atau saudara-mara yang bergantung kepada penganalisis penyelidikan, tidak memegang kepentingan dalam sekuriti yang dicadangkan dalam laporan ini (“kepentingan” termasuk pemilikan langsung atau tidak langsung terhadap sekuriti).

Penganalisis penyelidikan tersebut bukanlah di bawah JME Financial Services (Pty) Ltd. Anda digalakkan mendapatkan nasihat daripada penasihat kewangan bebas mengenai kesesuaian pelaburan, di bawah penglibatan berasingan, seperti yang anda anggap sesuai dengan objektif pelaburan tertentu anda, keadaan kewangan atau keperluan kewangan tertentu sebelum membuat komitmen untuk melabur.

Undang-undang Republik Afrika Selatan akan mengawal sebarang tuntutan yang berkaitan dengan atau yang timbul daripada kandungan maklumat/ penyelidikan yang disediakan.

JME Financial Services (Pty) Ltd, beroperasi sebagai ZA.CAPEX.COM, bertindak sebagai perantara antara pelabur dan Magnasale Trading Ltd, rakan kontrak untuk perbezaan yang dibeli oleh pelabur melalui ZA.CAPEX.COM, yang diberi kuasa dan dikawal selia oleh Cyprus Securities. dan Suruhanjaya Pertukaran dengan nombor lesen 264/15. Magnasale Trading Ltd adalah prinsip utama CFD yang dibeli oleh pelabur.