Superior broker technology provider since 2010
+1 (315) 675 1086 | Sales@YourOwnBrokerage.com

Continues to Attempt to Recover on Monday

[ad_1]

It is important to note that silver has an industrial component, meaning that market participants must navigate the conflict between wealth preservation and industrial demand. 

  • Silver experienced a modest rally during Monday’s trading session, signaling a general stabilization in the market.
  • Currently, the market is hovering around the 50-Day Exponential Moving Average (EMA), which has presented significant challenges.
  • The $24.50 level appears as a logical resistance point, given past price action. However, if the market manages to break above the 50-Day EMA, it is highly probable that a substantial upward movement will occur, potentially propelling silver toward the $25 level.
  • The $25 level holds psychological significance and has previously acted as strong support, suggesting that the market is likely to surpass this level and advance toward $26.
Advertisement

image

On the downside, if we break below the candlestick for the previous Friday’s session, it is highly likely that the $24 level will be tested, with silver potentially seeking the $23 level as the next target. The $23 level, being a significant round number, garnered considerable attention in the past as it marked the bottom of the consolidation area during the winter period. Further decline could lead to the consideration of the 200-Day EMA as a potential support level.

It is important to note that silver has an industrial component, meaning that market participants must navigate the conflict between wealth preservation and industrial demand. Traders concerned about an economic slowdown may view silver as a battleground between these two factors. Additionally, the market has shown resilience by bouncing off the 38.2% Fibonacci retracement level, suggesting the presence of technical support. Breaking below this level would introduce the 50% Fibonacci level near the $23 mark, which is likely to act as a significant correction level unless the US dollar significantly weakens, as it has the potential to impact multiple markets. Expect heightened choppiness and volatility in the silver market, as these characteristics are typical for this commodity.

In conclusion, silver recorded a modest rally and is currently testing the 50-Day EMA. Overcoming this level could spark a significant upward movement, targeting the $25 level and potentially reaching $26. Conversely, a break below recent support levels may lead to a test of lower price thresholds, including the $23 level. Silver’s industrial component introduces considerations regarding wealth preservation and industrial demand. Technical factors, such as the Fibonacci retracement levels, suggest potential support levels. Nevertheless, expect choppiness and volatility, which are inherent characteristics of the silver market.

Potential signal: Buying silver has been a winner. On a move above the $24.30 level, a long position could be initiated with a stop at $24. The target would be $25.05

Silver

Ready to trade our free trading signals? We’ve made a list of the top 10 forex brokers in the world for you to check out.

[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.


RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.


The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.


The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.



© 2009 - 2024 YourOwnBrokerage.com. All Rights Reserved.