Silver Today 27/9: Pressures Major Resistance (Chart)
Date
9/27/2024 4:39:32 AM
(MENAFN- Daily Forex)
During my daily analysis of the commodity markets, silver caught my attention as we managed to break above the $32.50 level, showing signs of life. By breaking through there, it was a very bullish sign, but we have since pulled back just a bit. This suggests that we are perhaps getting a bit tired, and therefore I think a short-term pullback does make a certain amount of sense. That being said, I still think that there are plenty of buyers underneath, and therefore I'm looking for value in order to get involved in this market.
Technical Analysis
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The technical analysis is very bullish, and therefore I think you have a situation where if we can break above the $32.50 level on a daily close, then it allows silver to really take off to the upside. In general, I think the $35 level could be your next target, but I don't think it's going to necessarily be easy to get there.
When I look at this chart, the $32.50 level is a major level of resistance, and it is of course an area where we have seen a lot of resistance previously, as it was a massive“swing high.” Furthermore, we also see the Relative Strength Index rapidly approaching the overbought area, but it is not there yet, so I still think that there are people that would be willing to get involved. All of that being said, if we do pull back from here, the $31 level looks to be supported, right along with the $29.75 level as the 50 Day EMA is approaching that same region as well.
Ultimately, this is a market that I think is almost impossible to start selling, due to the momentum, and then of course the fundamental reasons out there that continue to drive precious metals higher. After all, central banks around the world continue to cut rates, and of course gather gold. While gold certainly is preferred, it does have a bit of a“knock on effect” on the silver market as well.
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