Silver Stocks Price Analysis August 2020 | Silver Miners to Rally?

by birtanpublished on October 4, 2020

This week the price of silver has continued to push higher uh setting fresh seven year plus highs as at the time of recording it nudges towards 27 an ounce but what could be some interesting ways apart from trading silver directly to play this we're going to take a look at some silver miners and a popular silver tracker i did a video update last week where we look at the price of silver this trend that's been in place since the march lows and really how it's accelerated during july so i

Thought well let's do an update because we're seeing it breaking out again uh the time recording this week you can see it there it's pushed back above the highs from uh from last week those are in around about 26.20 we're pushing through there so i thought let's take a look uh maybe uh some other ways of gaining exposure to silver so in this video i'll talk to those we'll come back on the charts and take a quick look at these different markets i'm going to talk about hello i'm david jones from capital.com

And i thought as we're seeing uh silver continue to break out to seven year plus highs it'd be interesting to take a look at a few silver mining stocks and also the largest uh silver tracker out there that people use to get exposure to the price of silver so in this video i'll go through uh the details of some of the companies what to watch out for we'll jump back on the charts and look at things in a bit more detail as usual if you're watching this and you haven't subscribed if you could click on subscribe support

The channel and it helps us uh to continue to push out lots of videos throughout the week looking at different markets and different trading strategies so let's kick things off with um pan american silver they are listed on the nasdaq in the usa and i think this is an interesting one because at the time of recording we're expecting uh their results to come out after the market closed uh closes on the fifth of august so it's gonna be interesting to see what the

Market reaction is going to be to their latest earnings i've talked in previous silver videos um about how we've seen concerns about supply of silver because of mines being shut down during the coronavirus pandemic and the lockdowns that we saw and uh it was no exception i'm just back in july pan-american sort of uh suspended a couple of its operations uh in peru due to uh miners their workers there testing positive for kobe 19.

We have seen a strong performance for the share price it's it's traveled off those march lows we'll see on the chart in a second and where it's trading now just below 39 a share is interesting because if we go back to 2008 2011 the highs for the shares uh were up around 42 dollars a share so it's within 10 of those multi-year highs let's take a look at the chart so here's the chart for pan-american silver so let's take a look at the tentacles we've got this good trend that's been going on

Uh since those march loads and clearly this is going to be a pattern a theme we see with plenty of silver miners or companies exposed to the price of silver in some way as the price has recovered you know we'd expect to see their share prices uh recovering as well so pan american silver trading uh around 39 a share now that is just about three dollars below so i was saying there's 2008 2011 highs um so perhaps in the short term perhaps it's a little bit overextended but i think with that trend coming in around

About 32.50 a share if we did see any sizeable weakness from here then perhaps it looks like something of a buying opportunity looking at the rsi not surprising uh it's gone overbought this is a 10-day rsi we're looking at here and down here on the macd uh looks to be just giving giving uh something of a sell signal as uh we went into august for uh for pan-american so still positive um clearly depending on what happens with silver next but perhaps in the short term

A little too overstretched though let's talk about a market i think that that plenty of followers of silver will be familiar with slv the ishares silver trust so this is of course paper silver which um can raise uh plenty of arguments uh on both sides for those who prefer to have physical silver and those who are happy to trade things like etfs and eye shares like the one we're talking about now it gives you exposure uh to the price of

Silver and if we're looking at the day-to-day movements of what's going on in the cash market the market we look at here then s that will be uh the i shares should be moving the same way it's not a market we cover on our platform our cash market silver like i say moves pretty much the same way but let's take a look using trading views charts at slv see how it's performed and see if there's any opportunities so here's the chart of slv i've included this time around the 2011

Highs i did make a slight slip in the last video and referred to the the 2013 highs uh from april around i think it was uh 28 refer to those as the the the april 2011 eyes that of course incorrect those 2011 eyes are up here uh around 48 uh uh as share on the on the i share silver trust let's just zoom in what's been happening lately and of course what we're looking at here it is just the price of silver the same way when we

Look at it on the capital.com platform silver in the financial markets there's our trend from those march lows uh still pushing higher at the time of recording uh you know we've got support on that trend line coming in around 18 18 19 uh a share 18 19 an ounce obviously for silver pretty overcooked in the short term and the only problem is i think in a market like this if you're going to jump on because the trend is strong where does your stop go you know and i think for me the closest i'd want my

Stop at the moment is the other side of 21 which is a good uh what 10 15 actually probably even 20 away from where the price is going to open when it starts trading again this afternoon so you need to give it a wide stop in volatile markets and i think and i think that's something that can make some of us a little bit uncomfortable the other option is to wait for the pullback but of course the risk is the pullback never happens you know if you're doing

Waiting for a pullback when it broke 20 the price has moved another six dollars uh since then so it can be difficult to trade to get into uh in these these volatile times but for me if we did get a pull back to the 1920 area that's when it starts to look uh interesting i think from uh jumping on that trend point of view in the short term perhaps if you wanted to just grit your teeth and jump in the closest i'd want my stop the other side of these 30th of july

Lows coming in at around what 21.40 a share so somewhere past there so some great moves um but i think it gets a bit more interesting if we see some pullbacks the next silver miner we're going to look at is uh first majestic this is listed on the new york stock exchange the company owns uh three mines uh in mexico as of its latest results uh the end of june 30th of june of this year the company stated that it held 970 000 ounces of silver

And it was holding that it said in anticip in anticipation of higher prices in the second half of 2020 and so far that does look to have been a pretty astute move because of course we've seen silver uh boom through it through july this is another company where the second quarter results are due out the 6th of august let's um jump on the chart so those results are out on thursday this week take a look at the chart and see if there's any interesting big

Levels to watch so here's first majestic of course like like these other companies tracking that recovery in silver off the march low as the first majestic shares were down about 4.40 4.20 that sort of area so have um well more than traveled off those lows uh since then we've got the trend line sitting at around about 11 a share so again i think for the patient here uh a pullback is the opportunity uh if we were to get a pullback you know back to

What i really just just the the levels from the the end of july around about twelve dollars a share perhaps the better opportunity it's only if it starts to lose this level i think around 10 the lows from the 14th of july that we have to worry about that trend really uh coming to an end but for now that trend still remains positive and uh looking and even if it was to drop two or three dollars from here uh nothing really changes that recovery that's been going on since the march loads

The final one we're going to look at are wheat and precious metals it's a little bit different this one it's uh listed on the nyse new york stock exchange and it claims to be one of the world's largest precious metals streaming companies so let's just explore what that actually means so it doesn't own or operate uh the various silver mines itself but it does enter into contracts with the mines where it agrees to purchase part or all of the mines production at a

Predetermined price so again movements in the silver market can have a big impact on companies such as wheatons at the moment it's got our 15 agreements with 11 different companies the share price is up more than 150 since those march lows of course silver playing his part here let's take a look at the chart and here's the move in wheaton again of course off those march lows recovering from uh twenty dollars a share uh currently trading ahead of the market open at

Fifty six fifty six dollars a share we've had a breakout uh during july through those old uh mid-may levels of forty 48 a share and perhaps the opportunity here i know i keep saying i'm sort of waiting for a pullback but we do get plenty of volatility in the silver market so i do wonder if we will see them uh whacked back during august to around 50 a share so i think what i'm going to do is place an order that sits there around 50 get that set up and have

Stopped perhaps the other side of 44 but again with this one no denying that trend at the moment everything getting pulled higher by what we're seeing going on uh in silver and i'd still be uh perfectly happy to be a buyer on dips but seeing if i can get them closer to 50 than the 56 uh where they closed on tuesday of this week that's it for this quick look at some silver mining companies and that and that silver tracker we'll wrap things up there so from me david jones and capital.com

Good luck with your trading for more trading videos just like this please subscribe to our channel

Related Videos

from daily forex this is chris taking a look at the uh bitcoin market here you can see that we have uh found the market to be bullish we have broken above the ...
James fake revenue at deutsche bank has risen by 47 in the third quarter has this good momentum continued in the fourth quarter as well look we're continuin...
from daily forax this is chris taking a look at the um us stock indices this is the s p 500 and you can see that the s p 500 has uh rallied quite a bit did pul...
The capital position now and the confidence you have to deploy that dividend well indeed we have uh we've had a uh a very strong quarter um in which uh you ...
Hi everyone my name is adita and a few years ago i got divorced and became a single mom of two kids and that's when i started to look for ways to invest my ...
Have you ever thought of the true value of gold I mean really the value of something isn't its price it's what you can buy with it that is the true valu...
Hi this is vlad from effects empire euro dollar failed to settle above the resistance at 1.1870 and is trying to get below the support at 1.1830 if this attempt...
from daily forex this is chris taking a look at the uh crude oil marking cwti has gapped a little bit lower and then basically did nothing so uh at this point ...
Rupert what does this all mean for for equities but in general actually asset classes would you buy right now yeah so we are still broadly constructive on risk ...
Today I'm looking back at the Tesla stock on March 17th I did an analysis based on my ambassador diamond analysis the IDB a and I suggested that after its s...
The thing is if it's a legitimate expense and you are legitimately working from home take it you're literally throwing money leaving money on the table ...
from fx empire this is chris taking a look at the euro dollar and you can see that we are reaching above 118 as new york gets on board and perhaps trying to ma...
from daily forex this is chris taking a look at the euro and the pound you can see the euro has fallen a bit during the trading session here on friday as there...
The crude oil price has had a great recovery off those april lows but it does appear to be struggling over recent weeks so given the resurgence of the coronavir...
The recovery in silver continued into july and in the last week uh the price went somewhat parabolic moving from 19 up to 26 and you can see the sort of volatil...
Now one of the things that almost all millionaires have in common is they have exceptional I mean exceptional communication skills because they recognize that c...
Hi this is vlad from effects empire silver is currently trying to settle above the nearest resistance level at 23.30 if this attempt is successful silver will g...
from daily forex this is chris taking a look at the gold and silver markets you can see gold has smashed into this little short-term downtrend line that i have...
So tell us a bit more about the survey what what are your clients telling you about the lessons learned from this pandemic and what does it tell us about the fu...
At first glance ichimoku charts um can seem somewhat intimidating with a lot going on when we're looking at markets but they're also a really powerful w...