fxs_header_sponsor_anchor

News

Silver Price Analysis: Trades above 200-day average for first since March 9

  • Silver trades comfortably above the 200-day average for the first time in over two months. 
  • However, a bull breather looks likely, as technical charts show overbought conditions.

Silver is trading well above the 200-day average at $16.935 at press time, having closed above the long-term technical line on Monday. 

The semi-precious metal is hovering above the 200-day average for the first time since March 9. Prices fell in a near-90 degree manner from $17.19 to $11.64 in the seven trading days to March 18 as the coronavirus-led crash in equities triggered a global dash for cash. 

The latest move above the 200-day average has reversed that price crash. The sharp rally from $11.64 is now looking overstretched, as the 14-day relative strength index is hovering well above 70 for the first time early January. 

More importantly, the long upper wick attached to Monday's candle indicates buyer exhaustion and validates the overbought reading on the RSI. As a result, a consolidation or a pullback could be seen. 

A break below the 200-day average at $16.935 could cause more buyers to take profit, leading to a deeper decline to $16.36 (100-day average). 

On the higher side, a close above Monday's high of $17.57 would restore the immediate bullish view. 

Daily chart

Trend: Overbought

Technical levels

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.