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27/11/24
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Silver Market on the Cusp: Could a Bullish Shift Emerge?
Silver prices are experiencing a steady trend as technical analysis implies a potential shift from a bearish to a bullish momentum. Currently trading around $30.50 per troy ounce during the Asian market hours, silver is approaching a critical resistance point at the nine-day Exponential Moving Average (EMA) situated at $30.76. Traders will be closely monitoring this level and the psychological support at $30.00, which serves as a critical zone for price action.
Despite the optimism suggested by the momentum shift, indicators such as the 14-day Relative Strength Index (RSI) indicate that bearish sentiment still holds sway, as it remains below the neutral level of 50. Furthermore, silver continues to trade under both the 14- and nine-day EMAs, which reinforces the bearish outlook and demonstrates a lack of strong buying momentum in the short term. This environment suggests caution as the possibility of further price declines remains present.
If silver manages to break through the critical resistance surrounding the upper boundary of the descending channel, it could pave the way for further upward movement. The first target of the bulls would be the nine-day EMA at $30.76, followed by the 14-day EMA at $30.96. Conversely, should prices fall below the psychological support at $30.00, negative sentiment may intensify, driving prices towards a recent three-month low of $27.69. Additionally, the lower boundary of the descending channel at $28.50 could serve as another level of potential support.
Overall, silver markets are at a crossroads, with upcoming price actions poised to either confirm a bullish trend or deepen the current bearish phase. Investors are advised to stay vigilant as these key levels are tested in the coming sessions.
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