Silver Holds $52.30 as Bulls Eye $54.50 Breakout: Can Momentum Last?
Silver Prices Holding Steady Above $52.30 despite interest rate expectations & industrial demand having investors clamouring for a piece...
Quick overview
- Silver prices remain steady above $52.30, driven by industrial demand and safe-haven flows amid market uncertainty.
- The metal has gained over 65% this year, outperforming most commodities as investors seek stability and growth in clean energy.
- Technically, silver is trading within an ascending channel, with support around $47.90 and resistance levels at $53.61 and $54.53.
- For short-term trading, buying on dips near $52.00 is recommended, with targets set at $53.60 and $54.50.
Silver Prices Holding Steady Above $52.30 despite interest rate expectations & industrial demand having investors clamouring for a piece of the action. The fact that silver is both a precious and industrial asset has given it a leg up in recent weeks and, to add to that, rising safe-haven flows have been complemented by steady demand from sectors such as solar & electronics manufacturing.
Like gold, silver’s also gained from general market uncertainty & a weakening dollar outlook. The talk of interest rate cuts by the Federal Reserve has got investors piling into non-yielding assets while ongoing trade tensions between the U.S. & China have left investors with a lingering sense of unease. So far this year, silver is up over 65%, easily outshining most commodities as investors continue to seek both stability & exposure to long term growth trends tied to clean energy and the shift to electrification.
Silver (XAG/USD) Technical Picture – And the Channel’s Still Rising
From a technical standpoint, silver is still trading within an ascending channel and its higher highs and higher lows are still looking strong, a run that started back in early October. The 100-period SMMA floating around $47.90 still looks a solid base of support & is a good sign for this uptrend.
After a minor pull back, the market’s formed a bullish engulfing candle near $52.00 which is looking like a good sign of renewed buying momentum. The next resistance level to hit is likely around $53.61, with another ceiling around $54.53 just beyond that. To the downside, support levels are found at $52.15 and $50.25.
The RSI is currently hovering around 58 which shows there’s still some good momentum but its not over the top. There’s also a mild bullish divergence emerging, which suggests while prices continue to move upwards, the momentum lags a bit which could be a sign of another upward extension.
Silver (XAG/USD) Trade Setup – Buying on the Dip is the Way to Go
For anyone looking to trade this market in the short term, the structure is still looking bullish, but its best to enter on pull backs rather than trying to time the top. So here’s what you need to do:
- Buy zone: $52.00-$52.10 is still a good spot to enter near the channel support
- Targets: $53.60 & $54.50 are the places to aim for
- Stop-loss: make sure to keep an eye out below $50.25 to limit your losses
As long as silver stays above its channel base and the RSI stays above 60, the broad trend is still looking good. Right now the price action is mirroring a ‘three white soldiers’ formation which is a classic sign of a trend continuing. But a short period of consolidation near $54.50 before a bigger break towards $55.30 & beyond can’t be ruled out.
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