Markets

Silver Misses 39.50, Tests the 36.50 Pivot

Simple Moving Average (SMA) 200-period (bold, gray)

RSI-14 with Simple Moving Average 5-period of RSI attached.

Fibonacci Study

Elliott Wave Principles

Market and Price Action (patterns, candlesticks)

Intraday pivots and Intermediate-term support and resistance

Multiple Time-frame Analysis

Silver (XAG/USD)

Short-term

- Silver was in a sharp rally towards a previous pivot at 39.50 . The market failed to reach this pivot, capping the rally at 38.80 .

- Now the 1H RSI shows the bullish momentum being tested, as it tests the 40 level. Price action is also testing an important pivot at 36.50 . We have another important one at 35.70 that can keep the market bullish in the short-term, in context of a sideways market overall.

- A break below 35.70 suggests a bearish bias, but also in the context of a ranging market (until a break below the 32.30 low).

- The 4H chart shows the 33 and 32.30 lows as a rangesupport containing the bears now, so if these open up, further correction to silver's long-term rally can be anticipated. Also note that the 36.50 and 35.70 pivots represent the middle of the range , and a return to this area suggests the market is not sure what to do, but will try to figure it out in the equlibrium of recent price action.

- Currently, if the market can refrain from breaking below 35.70 , we have another chance at the 39.50 to 40 area. A break above the 40 level can then open up bulls towards the highs near 49.50 .

Has gold completed its correction and is it ready for bullish continuation ? Subscribe and become a member to shareyour views and join live discussions as well as webinars about the markets.

Fan Yang CMT

Chief Technical Strategist

FXTimes

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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