The 100 SMA Turns From Resistance Into Support For Silver
Silver and Gold are bouncing off the 100 SMA on the H4 chart
Gold and SILVER were bullish for a couple of year until the beginning of this year, as the trade war between the US and China was hurting the market sentiment. The uptrend picked up pace this year, as the coronavirus and the lock-downs sent the global economy into a deep recession, which benefited safe havens.
As a result, Gold surged above $ 2,000, making record highs by the beginning of August. But, the situation reversed for safe havens back then and Gold and Silver turned bearish. The price has been declining since then, pulling back down Silver as well, although the decline hasn’t been too straightforward.
We have seen some some decent pullbacks higher during this time, which have been good opportunities to go short. We have had a few sell forex signals during this time and still have a sell open signal in Silver. Although, sellers are having difficulties at the 100 SMA for both precious metals. The 100 SMA (green) has been providing support for Silver on the H4 chart for the last two weeks, and the picture in GOLD looks quite similar.
The 200 SMA (purple) was providing resistance at the top side, so a range formed in Silver during December. But buyers are taking their turn bnow and they are pushing the price above the 200 SMA today. This doesn’t look good for our sell forex signal here, but let’s hope the 100 SMA which has been acting as support on the daily chart, standing at $ 24,50 will turn into resistance and revers the price back down.
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