Yahoo Finance Silver Price Daily Forecast – Silver Gets Back Above Support At $17.00
Silver Video 28.05.20.
Silver Looks Ready To Test The Nearest Resistance
Yesterday, silver tried to settle below $17.00 but this attempt was unsuccessful, and silver returned back above this support level.
Gold managed to recover after the sell-off and is trading above the key $1700 level. Gold price upside is very important for the whole precious metal segment as it attracts new investments into the sector.
The U.S. Dollar Index is trying to settle below the support level at 99 following the release of various economic reports. In general, the economic picture remains grim, but the better-than-expected U.S. Continuing Jobless Claims report provides hopes that active hiring has already started in some sectors of the economy.
Gold/silver ratio is trying to get below 100 and looks set to continue the recent downside trend. Before the coronavirus crisis, gold/silver ratio was below 90, and a return to such levels will lead to material silver price upside.
So far, silver has shown that it has material support at current levels. The gold price upside and the general market upside help silver as it depends both on industrial demand and investment demand.
Technical Analysis
Silver has significant support just below $17.00. It has already made four attempts to settle below this level, but each attempt was unsuccessful, and silver quickly returned back above $17.00.
RSI has left the overbought territory, suggesting that upside momentum can increase further. If this happens, silver will soon test the nearest resistance level at $17.50.
In case silver manages to get above the resistance at $17.50, it will gain additional upside momentum and head towards the next resistance level at $18.15. In this scenario, silver will break out of consolidation, so the upside move may be quick.
On the support side, the nearest support level for silver is located near $17.00. If silver manages to settle below this level, it will likely gain significant downside momentum and quickly head towards the test of the next support at $16.50.
This is the support at pre-crisis levels. In addition, the 20 EMA has finally increased to $16.50, so I’d expect a lot of interest close to this support level.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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