As a top investment manager in the financial markets, it’s important to stay informed about key price levels and momentum signals in precious metals like silver and copper. This week, both silver and copper have shown signs of weakness, with silver breaking pennant support and copper stalling near key resistance levels.
Silver’s Downtrend Resumes?
Source: Trading View
Silver’s price has broken pennant support, indicating a potential resumption of the bearish trend. While some traders may consider shorting silver now, it’s crucial to monitor the $30.80 level. If silver can break and hold below $30.80, we could see a further downside towards $29.66. However, if silver fails to break $30.80, the setup may shift towards range trading or a possible push higher.
Momentum indicators for silver are mixed, with RSI (14) attempting to break its downtrend while MACD has yet to confirm the signal.
Copper’s Bearish Flag Formation
Source: Trading View
Copper is also showing signs of weakness, with a potential bear flag formation. The price has been rejected twice at $4.176, suggesting a downside move could be imminent. If copper breaks pennant support, traders could consider selling with a tight stop above for protection, targeting $4 as a trade objective.
Similar to silver, copper’s momentum indicators are conflicting, with RSI (14) breaking its downtrend without confirmation from MACD.
Conclusion
Overall, both silver and copper are teetering on the edge of potential bearish breakouts. Traders should closely monitor key price levels such as $30.80 for silver and $4.176 for copper to gauge the direction of the trend. By staying informed about price action and momentum signals, investors can make informed decisions to protect their investments and capitalize on trading opportunities.