Silver Technical Analysis / Commodity Trading Analysis

Silver Technical Analysis – 19-July-2024

FxNews—Silver has been in a downtrend from its July 11 high of $31.7. As of writing, the XAG/USD pair trades at about $29.3, slightly above the 78.6% Fibonacci at $29.2.

The 4-hour chart below demonstrates Silver’s price today, the critical support and resistance level, and the technical indicators utilized in today’s analysis.

The robust selling pressure has driven the stochastic oscillator and the relative strength index indicator into the oversold territory. This means the market is saturated from selling, and the price might bounce from the 78.6% Fibonacci at 29.23. Looking ahead, the awesome oscillator value is -0.91, with red bars below the signal line, indicating a bearish primary trend.

Silver Technical Analysis – 19-July-2024

The one-hour chart shows Silver below the 50- and 100-period simple moving averages, and the super trend indicator indicates that the XAG/USD is in a bear market.

In conclusion, the technical indicators in the Silver 4-hour chart suggest the downtrend prevails, but the Silver price is oversold, and it might erase some of its recent losses in the short term.

Silver Price Forecast – 19-July-2024

The immediate resistance level that kept the Silver price from dipping further is the 78.6% Fibonacci at $29.23. As explained before, the stochastic oscillator and the RSI are in the oversold territory, indicating the price might pull back from the $29.23 mark. If this scenario comes into play, the XAG/USD price might rise to test the upper resistance level, initially at 61.8% at $29.7.

Furthermore, if the buying pressure exceeds $29.7, the pullback could extend to the %50 Fibonacci at $30.1. Please note that this level is pivotal between the bear and bull markets. If the bulls close above $29.7, the bear market should be invalidated.

Silver Bearish Scenario

The market is oversold; therefore, going short or selling is not advisable. That said, the downtrend will likely resume if the selling pressure dips the price below the %78.6 at $29.23. If this scenario unfolds, the next support level will be $28.5.

Furthermore, if the price falls below $28.5, the sellers’ road to the June 26 low at $28.5 could be paved.

The bear market should be invalidated if the Silver price exceeds $30.1.

Silver Key Levels – 19-July-2024

Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.

Support: $29.3 / $28.9 / $28.5
Resistance: $29.7 / $30.1

Disclaimer: This technical analysis is for informational purposes only. Past performance is not necessarily indicative of future results. Foreign exchange trading carries significant risks and may not be suitable for all investors. Always conduct your research before making any investment decisions.