Welcome to Extreme Investor Network!
Silver Prices: Analyzing the Bounce Off Friday Support
Today, we saw silver hold above last week’s support level and start a bounce to recover from Friday’s significant decline. As we analyze the current situation, we see that silver is expected to move towards a price range of 29.97 to 30.05, based on recent lows and swing points. The 20-Day Moving Average is indicating a level of 30.61, showing potential areas of resistance in the short term.
What is interesting to note is how silver has fallen from its 50-Day Moving Average and uptrend line, suggesting that a retest of these levels as support might be on the horizon. This presents a key opportunity for traders to monitor these levels as potential entry points.
Key Support Levels at 28.78
The 50-Day Moving Average is currently around 28.78, signaling a crucial support level for silver. Additionally, we see a price range between 28.50 to 28.30, which aligns with Fibonacci retracement levels and extended targets from previous patterns. It’s noteworthy that this level also coincides with a prior swing high from May 18, further emphasizing its importance as a support region.
Since the price of silver reclaimed the 50-Day MA on March 1, we have seen it tested successfully as support in early May. This, combined with the Fibonacci confluence zone, presents a strong case for monitoring this area as a potential trend support zone.
Looking Ahead: Retracement Dominates
In order to confirm a bullish trend, silver would need to break above last week’s high of 31.55. While silver has shown strength and triggered a bullish continuation signal in the long-term uptrend, the current retracement phase is crucial in determining the next move. Traders should keep a close eye on the potential reversal dynamics that could lead silver back towards recent highs.
For a comprehensive overview of today’s economic events and how they’re impacting the market, make sure to check out our economic calendar. Stay tuned for more updates and analysis from Extreme Investor Network!