After a sharp decline that silver experienced on Monday, the commodity is now in consolidation, moving roughly between the 24.00 and 24.48 levels. This pattern has been in play from Tuesday and in order to consider the next short-term directional move, we have to wait for a break through one of the above-mentioned levels first. Hence our neutral approach for now.
If the sellers are able to bring silver below the 24.00 hurdle, which is marked by an intraday swing lows of November 10th and today, that may increase the commodity’s chances of drifting further south. The white metal might travel to the 23.55 zone, marked by the current low of this week. The area could provide a bit of temporary support, however, if the selling interest is still big, a break of that zone might lead to a test of the 23.20 level, marked by the low of November 4th.
Both the RSI and the MACD are currently flat. The RSI is moving around 50 and the MACD, although below zero, is coinciding with its trigger line. Given the lack of a clear direction, the two oscillators seem to support the idea of standing pat for now.
Alternatively, if silver pops above the 24.48 barrier, marked near the highs of November 4th and 10th, that may interest a few more buyers to join in. the precious metal might then rise to the 24.87 obstacle, a break of which could set the stage for a move to the 25.27 level. That level marks the high of October 21st.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.57% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2020 JFD Group Ltd.