Thursday, August 22, 2019
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Technical Analysis – Silver pulls back from 3-month highs

Silver reversed to the downside early on Friday but the 20-period simple moving average (SMA) in the four-hour chart managed to halt the bearish correction as it did a few days ago. The RSI and the MACD lost momentum as well, endorsing the negative move in the price. Yet, as long as both indicators remain in the bullish area – the former above 50 and the latter above its red signal line – chances for a sharp downfall are weak.

The 23.6% Fibonacci of 15.24 of the 14.27-15.43 up-leg is currently keeping the market action under control. Lower, the bears will try to overcome the 20-period SMA at 15.15 and meet a stronger obstacle around the 38.2% Fibonacci of 15.06.  A decisive close below the 50% Fibo of 14.90 and the ascending line drawn from the 14.27 bottom could be more harmful, potentially signaling the start of a downtrend.

In case of an upside reversal, the bulls would have to deal with the 15.37 level first before meeting the three-month high of 15.54 registered earlier today. Another step higher may also face resistance somewhere between 15.72 and 15.86.

Overall, silver is maintaining a bullish profile as long as it holds above the 15.00 mark.


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Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


Source: XM

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