Loading ...Silver exit around 18.50$
Using previous silver “spec vs currency” chart.. hid the some lines.. and added xagusd. Now.. check this out.. soo fascinating.
When silver starts behaving more and more out of character… increasing it’s speculative habits … it’s burning fuel!
Tops of certain importance declared when correlation to a fiat currency drops low… and negative. We are dropping fast.. now at .37
Silver could stall at ANY moment… probably at weekly/monthly defined resistance around 18.50$-20$. No shame for a swing trader to take profits there.
Patrick
Is this the co relation of silver with the Dollar Index ?
It’s not clear what you mean by co relation with fiat
Check previous post on how I see if asset is traded more like a speculation or more like a currency. So I took that chart for silver in previous post and noticed when silver really didn’t behave like a currency.. it eventually tops. So the bottom indicator is correlation of XAGUSD minus XAGNZD vs NZDUSD. By isolating the base currency, the residual price action is a combination of speculation and currency volatility. So now, to figure out what percentage of each, then compare to the pure currency pair. If it correlates high, then the XAG is behaving like a currency. If it correlates low, then XAG is behaving more like speculation.
In this example, it’s PURE XAG price movement correlated with NZDUSD. If the behavior is similar to a fiat currency pair, then you can deduce price movement in XAG was mostly following fluctuations in currency movement. If correlation with fiat pair is low.. then you can deduce price movement in XAG was more speculative leaning. There is no comparison with DXY, but with ANY fiat currency pair.
Agree Patrick. Also the GDXJ has closed three days above the upper Bollinger band and that is 75% near st top…
On daily.