⚪Silver Gains 4.5% on Cheaper Oil

The price of silver rebounded by 4.5% today. Gold prices added over 3%, while platinum and palladium rose by more than 5%. For silver, however, a critical technical shift is underway, driven first by a potential double bottom formation, and second, by a breakout above the 200-day moving average.

Technical analysis suggests the theoretical "head and shoulders" formation could have been discussed during the descent toward $61–62 per ounce. These levels simultaneously define the potential double bottom, alongside the clear pin bar observed on March 23. At that time, the price rebounded 33% from its local low to the $82–83 per ounce level, where the potential neckline for the formation should be considered. Furthermore, a near-term V-shaped rebound may be on the horizon, likely pushing prices toward the $73–74 per ounce range in the short term. Strong resistance is positioned in this vicinity, just above the 50- and 100-period averages.

Silver may be headed toward the short-term resistance level of $73–74 per ounce. Source: xStation5

In terms of deviations from averages, silver appears slightly undervalued relative to the 100-day SMA, but reasonably valued against the 1-year average. Conversely, the price has already rebounded from the 1-year average in recent months. Source: Bloomberg Finance LP, XTB

The summer period is typically favourable for silver, as evidenced by 10-year and long-term averages. However, the 5-year average suggests that prices may only begin to rebound around the 160th–170th session of the year. Source: Bloomberg Finance LP, XTB