Why I think this FTSE 100 share will go higher

TL;DR

Silver Miner Fresnillo and the silver market are expected to experience significant growth, with the potential for a decline in the US dollar.

Transcript

hello it's John Burford with chart of the week for for Monday the 7th of November I'm covering today an old Trend we've covered it uh quite extensively uh in the past but I think it's time to cover it now that is the silver Miner fresnillo it's the it's in the ftse 100 index and uh I believe it is really poised for quite a significant Advance as is... Read More

Key Insights

• 🫰 Fresnillo, a silver miner in the FTSE 100 index, is expected to experience significant growth due to accurate support and resistance levels on the weekly chart.
• 🫥 The silver market has remained in a tight trading range but is supported by a long-term support line, suggesting a potential bullish case.
• 😮 The recent rise in silver prices, despite strong US labor market data, indicates a changing background scenario and a possible shift towards a more bullish phase.
• 🥈 A decline in the US dollar would benefit the silver market, with a target of £14 for Fresnillo reflecting this anticipation.
• 💪 The correlation between strong job data, a strong dollar, and weak precious metals may no longer hold, increasing the potential for a more bullish silver market.
• 🥈 Monitoring the support levels for Fresnillo and the silver market, specifically the £6 region, is crucial in determining the bullish scenario.
• 🦕 The odds currently strongly favor a bullish scenario for Fresnillo and the silver market.

Questions & Answers

Q: What factors suggest that Fresnillo and the silver market are poised for significant growth?

The accurate support and resistance tram lines on the weekly chart for Fresnillo indicate strong potential for a push above the resistance line, with a target around £10 and a possibility of reaching £14. Additionally, the long-term support line in the silver market and the recent rise in silver prices suggest a bullish scenario.

Q: What impact could a decline in the US dollar have on the silver market?

A significant decline in the US dollar would benefit the silver market, as precious metals tend to perform well when the dollar weakens. The target of £14 for Fresnillo reflects the anticipation of a decline in the US dollar.

Q: What is the significance of the recent rise in silver prices despite a strong US labor market report?

The rise in silver prices, contrary to expectations based on the labor market report, indicates a shift in the background scenario. This suggests that the previous correlation between strong job data, a strong dollar, and weak precious metals may no longer hold, increasing the potential for a more bullish phase in the silver market.

Q: What are the key factors to watch in determining the bullish scenario for Fresnillo and the silver market?

It is important to monitor the support levels for both Fresnillo and the silver market, specifically the low at the £6 region. As long as these support levels hold, the odds strongly favor a bullish scenario. A break below these support levels would be cause for concern.

Summary & Key Takeaways

• Fresnillo, a silver miner in the FTSE 100 index, shows strong potential for a significant advance due to accurate support and resistance tram lines on the weekly chart.

• The silver market has been in a tight trading range but is supported by a long-term support line, suggesting a bullish case.

• The recent rise in silver prices, despite a strong US labor market report, indicates a changing background scenario and the possibility of a bullish phase.