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  • Silver is consolidated in quiet North American holiday session as bulls await risk-off flows.
  • The price of the white metal is not yet giving much in the way of technical clues from a swing trading perspective.

The precious metals market has seen a shakeout of weaker hands in recent weeks. 

Real rates have been the major theme behind the surge in precious metal prices and with the recent slump in stock prices, protection against them is alive as ever.

Analysts at TD Securities explained, ”nothing has changed with respect to the bullish case” for precious metals, ” as the prevailing macro tailwinds will continue to drive capital to seek shelter from negative real rates.”

While breakevens have corrected with the dip in equities, the global demand signal underlying commodity prices suggests that the correction is uninformative of broader market dynamics, which ultimately suggests that a reversal in equities could see real rates resume their downward trajectory.   

Silver technical analysis

The price of the white metal is not giving much in the way of technical clues, trapped in a consolidating wedge/symmetrical triangle formation.   

 However, the bar for a significant liquidation from silver is high given extreme readings in upside momentum.   

A break of 28.00 and a restest of the wedge’s resistance that should turn support would likely seal the deal for higher prices in the next bullish surge to a target of 30.80, November 2021 lows.

In the above monthly chart, the price is holding a support level and a 23.6% Fibonacci. In the below chart, the daily outlook is bullish above the support level

However, if the support zone breaks and the price subsequently falls below the support of the triangle, a run to the 38.2% Fibonacci retracement level would be expected. 

 

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