On September 20, Patrick MontesDeOca, CEO of the Equity Management Academy, reviewed an Academy report published over the weekend that correctly predicted the activity in the silver market this week.
MontesDeOca said the silver market was “Going to be pretty volatile” this week with the FOMC meeting Wednesday, which will consider what to do with interest rates. He said, “I think it is simply what I call chatter. To reduce that chatter, I use this methodology shown in the live trading room” at the Academy.
The methodology is the Academy’s VC Price Momentum Indicator, which relies on identifying supply and demand.
MontesDeOca said that once silver went through the resistance level on July 1, it moved “decisively up,” accelerating as was predicted in the weekly Academy report.
Silver is now trading just below the July 5 high of $21, 22. MontesDeOca said the price has got to the extreme above the mean. Using moving averages, the Academy’s methodology plots specific levels and pivot points for when to enter and exit the market. As one pivot point is reached, it triggers the next set of points.
MontesDeOca said, the market has “supply to challenge at $19.50 to $19.71. If the buying/demand energy is greater than the selling energy, with a price above $19.71, then this level of resistance will change into a level of support.”
In a weekly Academy report published last Saturday, MontesDeOca said, “The market in silver seems to be telling us a different story than the gold market.”
Silver closed Friday at $18.86, which was below the 9-day moving average that the Academy uses to identify the trend momentum of $19.53. Therefore, he said, the market is “bearish,” because it closed below the average. If the market closes above the pivot point of $19.53, it would negate the bearish sentiment.
The mean for the average price this week is $18.97. The market closed at $18.86 Friday, but if silver goes through $18.97, it is a bullish indication, because the market will penetrate the average price of $18.97. When the silver market moved through $18.97, it negated the bearishness, and kicked in a buy signal from $18.96 or below. The low was $18.71 on the 16th and on the 19th the low was $18.84. However, the market came right below the mean of $18.97 and closed above it, which, MontesDeOca said, “basically indicated the market sentiment is turning bullish.”
Subscribers to the Academy are told what to look for at the start of the week with specific entry and exit points. For example, $19.23 to $19.61 is the new target. The high yesterday was $19.38 and the high this morning was $19.36.
“We are stabbing into the weekly targets,” MontesDeOca said, “and the daily targets we have now in the red or supply zone are $19.50 to $19.71.”
Between the daily prices and the weekly prices in the report, the market is beginning to trade in that cluster of $19.61 to $19.71 which is the resistance level for the market, combining the daily and weekly resistance.
MontesDeOca said, “We are beginning to see a cluster of supply at these levels. What we want to see is enough demand to take out all that supply in this vicinity, close above it, and then we’re looking at pretty much targeting the previous high which is $20.25. Then $21.22 comes into play.”
The Equity Management Academy offers investors who want to become traders the opportunity to learn in a simulated, real-time trading room as they watch MontesDeOca trade accounts. After three months of simulated trading, if they feel confident they have learned enough and are approved by MontesDeOca, they are eligible to apply to join the real trading room and trade their own portfolio. For more information on the criteria to join the Academy’s select group of investors, please email email@example.com or call 805-418-1744.