Silver Price Forecast: Pulls Back After Reaching Highest Weekly Close Since 2012

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Indicator confluence marked resistance

Note the graph that last week’s new trend of $ 33.59 from last week found resistance to the confluence of various indicators. They include the completion of a 100% target for an increasing ABCD pattern for $ 34.51, and two trend lines that mark the top of rising parallel trend channels. There is a larger upward trend that starts from the Lows of August 2022 and a shorter advance from the LOS points of December.

It can be said that one of the upper channel lines may not be in the perfect location. But the fact that the two lines came around the same price when silver approached, and then resistance was seen, followed by a one -day bearish reversal today, shows why confluence can be so useful.

Behavior around the 20-day advancing average must give instructions

Since the 20-day MA on 11 March was recovered, there is only one dip to test as support. That happened on March 21 and it established a higher swing low. Because resistance has been seen from a peak of $ 34.59, a successful support test on or above the 20-day MA, now at $ 33.35, seems possible. If the price is rejected from the area around the 20-day line, it would be bullish for the short-term recording that starts at the late February higher Swing Low (C).

That Swing Low found support around the 50-day MA. If this or a similar scenario unfolds, silver can continue to challenge the highlights and resistance around the upper channel lines. Whether that can lead to sustainable progress or is not to be seen. It is important to add that silver ended last week at the highest weekly final race since October 2012. This is consistent with the Bullish long -term patterns in the price of silver.

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Look for a look in all the economic events of today Economic calendar.

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