Silver Price Forecast: Supported Prices Move to Resistance
- Silver Prices Bounce from Support at $18.75
- Bullish Silver Price Breakouts are Signaled Above $19.25
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Silver prices remain supported this morning above $18.75 an ounce, and so far have rebounded to trade back above $19.00. Technically $18.75 remains as a key value for support, as Silver prices have been consolidating in a $1.50 range for the last six trading sessions. As displayed below, the commodity is now trading back towards range resistance near $19.25. If Silver breaks out above resistance, it opens prices to continue towards other key values of resistance. This includes the previous swing high at $19.66, as well as the psychological $20.00 level.
In the event that prices fail to break above resistance, it would suggest that Silver prices might continue to consolidate between supports in resistance. Traders may elect to trade this range until a daily breakout occurs. It should be noted that a daily bearish breakout, below $18.75, would potentially expose key values of support including $18.50 and $18.39.
Silver Price 2 Hour:
(Created by Walker England)
Sentiment for Silver (Ticker: XAG/USD) currently has a SSI reading at +3.54. With 78% of traders positioned long, this typically suggests that Silver prices may trade lower. In the event of a bearish breakout, it would be expected to see SSI remain at positive extremes. Alternatively if prices breakout higher, traders should look for SSI to move back towards more neutral values.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.