Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Is silver about to head higher?

Published 2017-06-27, 08:35 a/m
Updated 2017-06-27, 08:35 a/m

Investing.com - Silver has been relatively volatile over the past few weeks, but despite the recent pullback from the high at $17.714, it could be getting set to rally again.
The precious metal is currently trading at $16.533, relatively close to key support. Any further downside moves would need to surpass this level but downside risks are easing, Blackwell Global analyst Steven Knight says in an article published by Investing.com.
The daily chart shows a relatively clear short term, rising trend line, implying support in the coming days. The RSI Oscillator is also near oversold levels. The Stochastic Oscillator also points to a potential reversal with a crossover, within oversold territory, seen in the past few days.
However, it is relatively difficult to predict the timing of potential breakouts given some of the opaque actors behind the scenes, although building pressure for an upside correction in the coming days is relatively clear.
Price action is currently being squeezed between a rising trend line and declining moving averages. Clearly, something must break and both of the oscillators seem to suggest that the upside is the probable direction.
Silver is likely to see some bullishness in the coming days provided it can break through the declining moving average lines. If it can surmount this, we are likely to see a significant technical rally that could take it back towards the $17.582 mark.
Fundamentals are also positive, with worsening U.S. economic data clouding the risk of further Federal Reserve action in the months ahead.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.