Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Silver Set To Extend Bullish Run For Ninth Week

Published 26/02/2017, 09:09
Updated 18/05/2020, 13:00

As of Friday, Gold and silver have risen for the third straight day and both precious metals look closed the week higher. Over the past nine weeks, gold has risen on eight occasions. Silver meanwhile has risen in each of the past nine weeks. These dollar-denominated and perceived safe-haven precious metals have risen during a time when Wall Street has repeatedly hit new all-time highs and despite the dollar holding near its multi-year highs.

The metals’ remarkable performance may suggest that investors are positioning themselves up for a major risk-off event – such as a collapse in the US stock markets. With the major US indices rising almost parabolically, it is just a matter of time before the inevitable happens. The trouble is, the parabolic rally could turn literally vertical before the markets start to head south. But one thing is for sure, we are getting very close to the upcoming stock market sell-off.

This does not necessarily mean the markets will absolutely collapse. But we are anticipating there to be at least a sizeable correction.

As far as the precious metals are concerned, they appear poised to rise further in the coming days and weeks. At the time of this writing, silver was testing a key resistance level at $18.40 after breaking its well-established bearish trend line on Thursday. This $18.40 level was the last support prior to the breakdown in November that eventually saw the metal drop for a time to below $16.00. Now back at $18.40, the metal is testing the strength of the selling pressure again. Because of the big drop previously, some bullish speculators are clearly happy to book profit here ahead of the weekend. But if and when this level breaks then we may see a quick rally to the next bullish objective at $19.00. This level was previously resistance and corresponds with the 61.8% Fibonacci retracement level against last year’s high. But despite what silver does around $18.40 today, the path of least resistance is clearly to the upside and will remain that way until a key support such as $17.85 breaks down. Ahead of this level, another important support to watch now is at $18.10 – the previous resistance level.

Silver Daily Chart

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Original post

Latest comments

Thanks
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.