Key Macro Chart: Silver may see a historic breakthrough (2024/9/16)
Buffett once again sold $1 billion worth of US bank stocks, raising concerns about the banking industry's plight. The Federal Reserve will cut interest rates this Thursday, analysts point out that if there is an economic recession, the stock market may fall by 15%; if there is no recession, the stock market may rise by 10%. Silver prices rose by over 10% last week, analysts believe that silver may see a historic breakthrough, with a target price of $35 per ounce, and a key breakthrough range of $31-32
Banking Industry Alert?
Buffett sells $1 billion worth of US bank stocks again. In early August, Buffett sold US bank stocks for 12 consecutive trading days, cashing out a total of $3.8 billion. Is the banking industry in trouble? At the same time, some analysts are associating Buffett's move with the fact that Bank of America holds a large short interest position in silver.
Rate Cut vs. US Stocks
After 4.5 years, the Federal Reserve will cut rates again this Thursday.
The chart below shows that historically, if there is a recession when rates are cut, stocks usually fall by about 15% over the next 12 months; but if there is no recession, stocks may rise by over 10%. The question is, we have to wait a few months to confirm whether we are really entering a recession.
Silver
Analyst: Silver prices rose by over 10% last week, but what truly impresses me is the strong technical structure in the weekly chart below.
In the past year, silver has been consolidating within a rectangular range, then broke out in the spring of 2024 and rose for two months, mainly consolidating since May. Last week, silver resumed its upward trend, and I believe the breakout target of the descending triangle is around $35 per ounce.
Silver ii
Analyst: The key breakout range for silver futures on the annual chart is $31-32, and silver prices are now approaching this level. Observing the chart below: The contracting orange arrow pattern indicates that the breakout is almost certain. This could be one of the most important breakouts in history, and investors should be prepared.
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