After the yield on the benchmark 10-year Treasury bill fell, sending the dollar lower, SILVER and GOLD rose following two sessions of decline. A weaker dollar could allow these precious metals to start a new upward trend after remaining under pressure. In this analysis, we will focus on three intervals to find out the perspective of the SILVER, since this precious metal could outperform GOLD.
Weekly interval :
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appA stronger dollar during the second half of March led SILVER prices to reach a two months low. Prices found support on the weekly cloud at 23,50$ while RSI bounced off the 50 level (yellow circle). Since then prices kept rising and the next weekly resistance level can be found on the Kijun-line (blue line) at 26$. This resistance is also reinforced by the Tenkan-line (red line) and could be a key level to break. If bulls manage to take prices higher, the door will be open to the next resistance at 27$.
SILVER, W1 interval, source : xStation 5
Daily interval :
On a daily basis, after a decline, prices found support on the Tenkan-line (red line) and the 23,6% retracement. Prices are currently trying to break above the 38,2% retracement. Breaking above this level may announce an upward move through the daily Ichimoku cloud to the 61,8% retracement. Keep in mind that the cloud acts as a support or resistance and may halt the upward move. Breaking the upper limit of the cloud reinforced by the 78,6% retracement at 27,30$ would be a strong bullish signal.
SILVER, D1 interval, source : xStation 5
H4 interval :
On the H4 interval, one may notice as the Ichimoku cloud worked as a support, allowing prices to rise to the next 28,2 % retracement. If the aforementioned level is broken, price could rise to next 50% retracement at 26$, near the lower limit of the daily Ichimoku cloud and weekly Tenkan-line. If any declines occur, the next support will be the H4 cloud at 25,20$. A key support can be found at 24,50 and breaking this level would be a bearish Ichimoku signal.
SILVER, H4 interval, source : xStation 5
Réda Aboutika, XTB France
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
