Sat, Dec 04, 2021 @ 17:12 GMT
HomeContributorsTechnical AnalysisExtended Silver Rally Reaches Critical Resistance

Extended Silver Rally Reaches Critical Resistance

Similar to its richer cousin, gold, silver has seen a sharp relief rebound for the first month-and-a-half of the year, rising more than 12% since the beginning of 2017. In fact, silver’s performance during this time period has substantially eclipsed that of gold.

This rally for both silver and gold has coincided in an expected fashion with a pullback for the US dollar along with continued ambiguity regarding the outlook for US interest rates after the last Fed rate hike in December.

Silver is currently trading in a strong uptrend, but is also entrenched within a longer-term downtrend since the 21.00-area high of July 2016.

The price of silver has currently bumped up against the major resistance imposed by a confluence of factors, including a descending trend line outlining the noted downtrend from July, the key 18.00-area support/resistance level, and the 200-day moving average.

As of this writing, silver has broken slightly above the 18.00 resistance level. If the US dollar continues to fall in the short-term, a clean breakout for silver above 18.00 and the abovementioned resistance factors is a distinct possibility, in which case the next major upside target is at the key 19.00 resistance level, which has not been reached since November of last year. In the opposite event that the price of silver respects resistance with a turn back down at or around the 18.00 level, the next major downside target within the still-intact bearish trend is around the 17.00-area support.
DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

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