Tomasz Wisniewski
Axiory Global Ltd.
It had been doing really well since the beginning of September but it’s looking like silver’s rise has stopped, and stopped for good.
Silver’s recent strength was technically displayed with a beautiful inverse Head and Shoulders pattern (grey), which over the last week led to a breakout of this formation’s neckline (blue). Unluckily for buyers, close to the neckline was a crucial, long-term resistance (22.2 USD/oz orange), which had served as a key support between July 2020 to May 2022.
Contact with that resistance was enough for buyers to back off and for sellers to join the party. The price reversed and did so quite rapidly, breaking below the neckline. That created a false breakout pattern (yellow) and was a direct signal to sell.
Taking all this into consideration, the current sentiment on silver is negative, and over the next few days, we’ll most probably see the price drop even lower.
Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.
Recommended Content
Editors’ Picks
GBP/USD stays weak near 1.2400 after UK Retail Sales data
GBP/USD stays vulnerable near 1.2400 early Friday, sitting at five-month troughs. The UK Retail Sales data came in mixed and added to the weakness in the pair. Risk-aversion on the Middle East escalation keeps the pair on the back foot.
EUR/USD holds steady near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
Gold: Middle East war fears spark fresh XAU/USD rally, will it sustain?
Gold price is trading close to $2,400 early Friday, reversing from a fresh five-day high reached at $2,418 earlier in the Asian session. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Israel vs. Iran: Fear of escalation grips risk markets
Recent reports of an Israeli aerial bombardment targeting a key nuclear facility in central Isfahan have sparked a significant shift out of risk assets and into safe-haven investments.