Silver’s price surged above the 50-day moving average (DMA) at $28.99 and the 100-DMA at $29.20, supported by a bullish ‘double bottom’ formation. With strong momentum indicated by the Relative Strength Index (RSI), the metal is now targeting resistance levels at $30.00, $30.18, and $30.84.
If the price drops below $29.00, it could signal a shift to bearish sentiment, with key support at that level. However, the overall outlook remains positive as Silver continues its upward trend.
Silver’s Rally Explained
On Thursday, Silver’s price saw a sharp rally, gaining over 4.30% to reach $29.90. The increase was driven by US Dollar weakness and a negative jobs report, highlighting the metal’s safe-haven appeal in uncertain times.
Technical Analysis and Price Action
The ‘double bottom’ pattern and strong RSI support Silver’s upward movement, with key resistance levels identified at $30.00, $30.18, and $30.84. A break above these levels could see Silver reach new highs, with $31.75 as the next target.
For bearish momentum to take hold, Silver would need to fall below $29.00. Until then, the path of least resistance remains to the upside.
Silver FAQs
Silver is a precious metal often traded by investors for its value and as a hedge against inflation. Its price can be influenced by various factors, including geopolitical events, interest rates, and the strength of the US Dollar. Additionally, Silver’s use in industries like electronics and solar energy can impact its demand and price.
Overall, Silver’s price forecast remains positive, with key levels to watch for potential breakouts and shifts in momentum. Stay informed and consider Silver as part of a diversified investment portfolio for potential growth and protection against market uncertainties.