Silver price has been within a horizontal channel for about a week. The subtle movements will likely continue ahead of the US inflation data scheduled for release on Friday. The CPI reading will offer cues on the probable direction of Fed’s policy. Lower-than-expected figures may boost the precious metal as it would lessen the focus on rate hike expectations. In the coming week, BoE, ECB, and Fed are expected to release their interest rate decision.
Since the beginning of December, silver price has been trading within a rather tight range. The upper and lower borders of the horizontal channel are along the 50-day EMA at 22.75 and the support zone at 22.10 respectively.
Notably, the precious metal has been under pressure since mid-November when it hit its three-month high at 25.40. Over the past three weeks, it has dropped by about 12%. At the time of writing, it was down by 0.65% at 22.35.
On a four-hour chart, it is trading below the 25 and 50-day exponential moving averages. Besides, it has been below the long-term 200-day EMA for two weeks now.
In the ensuing sessions, the aforementioned range will be a crucial one for silver price. for a trend reversal to occur, there needs to be enough bullish momentum to push the metal past 23.50. In the meantime, a move above the horizontal channel’s upper border will likely place the resistance zone at 23.00. On the flip side, past the lower border at 22.10, the psychological level of 22.00 will be a viable support level.
This post was last modified on %s = human-readable time difference 14:44