After hitting the area near the 24.809 level, silver reversed lower and is now seen traveling lower. That said, the commodity continues to trade above a short-term tentative upside support line drawn from the low of September 30th. Even if the price declines a bit more, as long as it stays above that upside line, we will continue aiming higher overall.
As mentioned above, a small decline might bring the precious metal closer to the aforementioned upside line, which if continues to hold, could help bring the bulls back to the table. If so, silver may climb to the 24.235 obstacle, or even to the 24.601 zone, marked by the high of October 25th. If the buying doesn’t stop there, the next possible target might be at 24.809, which is the current highest point of October.
The RSI and the MACD are flat overall. Besides that, the RSI is just fractionally below 50 and the MACD is slightly below zero and the trigger line. The two oscillators seem to be in support of the idea of seeing a slight correction lower first.
Alternatively, if the previously-discussed upside line breaks and the price falls below the 23.557 hurdle, marked near the high of October 14th and the low of October 20th, that may open the gates for further declines. Such a move might signal a change in the direction of the current trend, potentially clearing the path towards the 23.171 obstacle, or to the 23.000 area, marked by the low of October 18th. If the slide continues, the next possible target could be the 22.605 level, which is an intraday swing low of October 13th.
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. 73.90% 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 2021 JFD Group Ltd.