Silver springs back: A shiny rebound from key support

Hourly chart overview

Current trend: Silver remains neutral to slightly upside-biased, fluctuating near the 100-day Simple Moving Average (SMA). Tug of war is going on between bulls and bears and it seems like bulls have edge with themselves as it already boucned from key support level since last 2 two trading session.

Geopolitical influence: Reduced tensions in the Middle East (Israel-Iran ceasefire) have provided stability but have not spurred significant momentum in silver's price.

Technical indicators:

RSI: Positioned above the midline, signaling mild bullish momentum but not in overbought territory.

50 EMA: Acting as a dynamic support level, reinforcing the current range-bound movement.

MACD: Bullish crossovers indicate potential upward pressure, but high histogram volume suggests volatility.

Resistance levels:

$30.87-$30.90: Immediate zone; a breakout above could see prices heading towards $31.10-$31.14.

$31.44: Further bullish momentum could target this level, with the potential for continued upward movement.

Support levels:

$30.18-$30.15: Immediate support zone; a breakdown may lead to $29.67-$29.64.

$29.17: Major support; a breach could trigger a more significant bearish move.

Impact of upcoming U.S. economic data:

Silver prices are sensitive to U.S. economic indicators, which can influence the dollar and interest rate expectations:

Manufacturing and services PMI: Insights into economic health, affecting demand for industrial metals like silver.

Employment data (ADP, NFP, unemployment rate): Key indicators for Fed policy outlook, which impacts silver as a hedge against inflation.

Inflation and consumer sentiment: Any surprises in inflation expectations could drive safe-haven demand for silver.

Trading strategy:

Breakout opportunities: Watch for a breakout above $30.90 or a breakdown below $30.15 for directional moves.

Risk management: Use stop-loss orders near key support and resistance levels.

Economic data monitoring: Stay alert during data releases as they could trigger sharp moves in silver prices.

Conclusion:

Silver’s price action is poised for a potential breakout or breakdown depending on economic data and geopolitical developments. The short-term focus remains on the $30.87-$30.90 resistance and $30.15 support levels. Maintain a balanced approach, blending technical analysis with macroeconomic insights for informed trading decisions.