Missed the bullish breakout on silver recently?
This short-term pullback might be your chance to hop in the new trend!
Here’s where more buyers might be waiting.
Silver (XAG/USD): 4-hour
This precious metal busted through the neckline of its double bottom AND the long-term descending trend line that’s been holding since May.
This suggests that a big uptrend might be brewing for silver in the next few weeks or months. Before all that happens though, it looks like the commodity price needs a quick pullback to gather more buying energy.
Which levels are silver bulls eyeing?Using the handy-dandy Fib tool on the breakout rally shows that the 50% to 61.8% levels span a prime area of interest.
While the 38.2% Fib seems to be holding as support right now, Stochastic is still heading south to show that there is some bearish pressure left for a larger correction.
Meanwhile, the 100 SMA just crossed above the 200 SMA to confirm that support levels are more likely to hold than to break. This means that the uptrend could gain more traction pretty soon!
Some market junkies say that silver prices popped sharply higher a few days back when the Indian government announced higher import taxes on platinum, effectively boosting demand for other precious metals.
Safe-haven buying is also another factor lifting demand for silver and gold, as investors remain jittery about the slide in Treasury yields.
Stay on the lookout for major swings in market sentiment and U.S. bonds when trading this one!
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.