Yahoo Finance Silver Price Forecast – Silver Slowly Moves Higher and Remains Prepped to Strengthen
Silver strengthened on Monday as it reached a 10-day intraday high following a bullish breakout last Friday. In addition, last week’s high was exceeded providing an initial bullish signal on a weekly time frame.
Bullish Breakout in Silver
A breakout of a descending trend channel occurred last week with silver closing the week above the top trend line of the channel, and on a weekly basis closing at a three-week high. Currently, silver is at $17.80, up 0.071 or 0.40%.
Ideally, for the bulls, we would subsequently see an increase of momentum and buyer enthusiasm in price. So far, that’s not the case, but given that banks, stock and bond markets are closed in the U.S. due to the President’s Day holiday, activity levels can be expected to be muted.
China Liquidity
Fear of slowing global growth persists due to the impact on the economy from the spread of the coronavirus outbreak in China and elsewhere. Expectations are that central banks will continue to pump liquidity into the system to counter the negative impact of the virus.
In this regard, China’s central bank said today it would allow banks to increase their number of non-performing loans thereby freeing up capital and releasing liquidity into the economy.
On Wednesday, the U.S. Federal Open Market Committee releases meeting minutes, which will provide additional details as to how the Federal Reserve is thinking about the dynamic economic situation.
Meanwhile, the U.S. dollar index advanced to a new trend high. This is the tenth day in a row where the dollar exceeded the prior days high.
Bullish Moving Average Crossover Confirmation
The 4-hour intraday chart provides a close-up view of recent price action. Today, there was one new piece of evidence on the intraday chart supportive of a continuation of the bullish move. The 21-period exponential moving average (ema) crossed above the 55-period ema.
Now, although this has happened before since silver started to correct off the $18.84 high from six weeks ago, it still provides another piece of evidence for higher prices.
Also keep an eye on the daily chart for a moving average crossover as that will give a stronger bullish confirmation signal. Of course, other moving average time frames can be used if there is a short and longer time frame period combined.
This article was originally posted on FX Empire
